• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.6D
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• pp.917-926
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• 2006

Transportation Economies of scale are the essential properties of hub networks. One critical property of the hub network design problem is to quantify cost savings which stem from economies of scale, the costs of operating hub facilities and opportunity costs associated with delays stemming from consolidation of traffic flows. Due to the NP-complete property of the hub location problem, however, most previous researchers have focused on the development of heuristic algorithms for approximate solutions. The purpose of this paper is to develop a hub network design model considering transportation economies of scale from the consolidation of traffic flows. The model is designed to consider the uniqueness of hub networks and to determine several cost components. The heuristic algorithms for the developed model are suggested and the results of the model are compared with recently published studies using real data. Results of the analysis show that the proposed model reflects transportation economies of scale due to consolidation of flows. This study can form not only the theoretical basis of an effective and rational hub network design but contribute to the assessment of existing and planned logistics systems.

• Journal of Korean Society of Transportation
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• v.27 no.1
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• pp.129-141
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• 2009

Intermodal freight transportation is defined as the movement of freight from origins to destinations by two or more transportation modes. When implemented in hub networks, it could enhance the efficiency of the networks because consolidated flows are transported by more suitable modes and technologies. In spite of this advantage, the intermodal hub network design problem has received limited attention in the literature partly because of the complex nature of the problem. This paper aims to develop an optimization model for designing intermodal hub networks with sin91e allocation strategy. The model takes into account various cost components of intermodal hub networks including transportation, stationary inventory, and service delay costs. Moreover, using transport frequency variables, it is capable of endogenously determining the transportation economies of scale achieved by consolidation of flows. As such, the model is able to realistically represent the characteristics of intermodal hub networks in practice. Since the model Is a complicated nonlinear integer programming problem, we perform model simplification based on the analytical study of the model, which could facilitate the development of solution algorithms in the future. We expect that this study contributes to the design of intermodal hub networks as well as to the assessment of existing logistics systems.

• Journal of Korean Society of Transportation
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• v.26 no.6
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• pp.103-112
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• 2008

Implementing hub networks in logistics is generally attractive and effective because of cost savings derived from economies of scale on network transportation, and objective of the hub network design problem is to decide optimal hub locations, and the transportation route of each origin-destination pair. This problem is generally a NP-complete problem not to solve easily, and it is almost impossible to find optimal solutions considering the big-sized network within a reasonable time. This research tried to find optimal logistics strategy in the given big-sized real network and the freight origin-destination data. The objective function, which was proposed by Honor and O'kelly (2001), that rewards economies of scale on network links with increase of transportation volumes, is applied. This thesis proposed the optimal hub network of korea within a reasonable time based on engineering approaches. And it is expected that this thesis can contribute to plan freight policies which can improve to have competitive power in the level of a company or nation by reducing logistic costs.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2013.06a
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• pp.214-215
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• 2013

Current competition among companies than regional, the time constraints, it is globalization, Tilt the efforts of many to be operated by building the efficient distribution system to reduce logistics costs and improve customer service it is reality's there. Therefore, the need for industrial complexes environmentally friendly can be cost competitive companies perform cavitation region's increased. To build the distribution center these logistics system through a joint of freight and appropriate policy is required. In particular, efficient operation through the system construction of industrial complexes in the logistics system is very important in terms of friendly low-cost urban logistics, the environment. Since the traffic volume which is Jipufa and utilization of network is transported by a more appropriate technicians and means suitable operating model can efficiency is improved. However, despite these advantages, research network design has not been actively conducted due to the complexity of the problem. Therefore, in this study, by analyzing the logistics system, and presents the operating model through a simulation and basic settings for the model of the logistics complex based on the analysis result, the construction of infrastructure of logistics industry complex it is intended to present the article.