Express shipment service network design with complex routes

摘要

The Express Shipment Service Network Design (ESSND) problem consists in defining a network of flights that enables the overnight flow of express packages from their origins to their destinations at minimum cost. This problem is normally solved considering only one-leg, multi-leg and ferry routes. Assessing the value of more complex route types is an open question of academic and practical importance. In this article, we present a mixed integer programming model that includes five types of complex routes: two-hub, transload, direct, inter-hub and early routes. We assess their economic impact by performing many experiments built from an instance provided by FedEx Express Europe. Inter-hub and early routes have the best performance, with significant average savings (from 0.5% to 3.5%). (C) 2019 Elsevier Ltd. All rights reserved.