Timetabling hub-and-spoke parcel distribution inter-facility network

Abstract

This paper introduces an important problem encountered when designing hub-and-spoke parcel distribution network. This problem, which comes after generating the network design and before implementing it, is concerned with parcel timetabling. A non-linear model, composed of the shipping-time objective function and the time-precedence constraints, is developed in order to optimise the daily movements of parcels from their origins to their destinations. The resolving of the problem highly depends on the ability of the analyst to develop intelligent ways to limit the values of decision variables. The model applied to a real-world case is entered in a spreadsheet where the objective function is evaluated for the possible decision variable values; the timetable generated for a newly designed hub-and-spoke network decreased shipping time by around 30% as compared to the timetable of the existing design.