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A hybrid hub-and-spoke postal logistics network with realistic restrictions: A case study of Korea Post
Affiliation:1. Postal & Logistics Technology Research Department, Electronics and Telecommunications Research Institute, Daejeon 305-700, Republic of Korea;2. Department of Industrial Engineering, Seoul National University, Seoul 151-744, Republic of Korea;1. Department of Computer Science and Statistics (DCCE), São Paulo State University (UNESP), São José do Rio Preto, SP, Brazil;2. Faculty of Computation (FACOM), Federal University of Uberlândia (UFU), Uberlândia, MG, Brazil;3. Center of Mathematics, Computing and Cognition, Federal University of ABC (UFABC), Santo André, SP, Brazil;4. Federal Institute of Triângulo Mineiro (IFTM), Ituiutaba, MG, Brazil;5. Transdisciplinary Center for Study of Chaos and Complexity (NUTECC), São José do Rio Preto Medical School, São José do Rio Preto, SP, Brazil;6. Kidney Transplant Surgical Service, Base Hospital, Fundação Faculdade Regional de Medicina (FUNFARME), São José do Rio Preto, SP, Brazil;7. Pathologic Anatomy Service, Base Hospital, Fundação Faculdade Regional de Medicina (FUNFARME), São José do Rio Preto, SP, Brazil;1. Faculty of Computer Science, Otto-von-Guericke University Magdeburg, Universitätsplatz 2, D-39106 Magdeburg, Germany;2. Institute for Community Medicine, Ernst-Moritz-Arndt University Greifswald, Walther-Rathenau-Straße 48, D-17475 Greifswald, Germany;3. Institute for Diagnostic Radiology and Neuroradiology, Ernst-Moritz-Arndt University Greifswald, Sauerbruchstraße, D-17487 Greifswald, Germany;1. Khalifa University of Science, Technology and Research, P.O. Box 127788, Abu Dhabi, United Arab Emirates;2. Etisalat BT Innovation Center, P.O. Box 127788, Abu Dhabi, United Arab Emirates;1. Department of Informatics, Universidad Técnica Federico Santa María, Avenida España 1680, Valparaíso, Chile;2. Intelligent Systems Laboratory, University of Bristol, MVB, Woodland Rd, Bristol, BS8 1UB, UK;1. Computer Science Department, Federal University of Maranhão (UFMA), São Luís, MA, Brazil;2. Department of Informatics, University of Minho, Braga, Portugal;1. School of Information Systems, Singapore Management University, 80 Stamford Road, Singapore 178902, Singapore;2. School of Electrical and Electronic Engineering, Nanyang Technological University, Nanyang Avenue, Singapore 639798, Singapore;3. Manufacturing Execution and Control Group, Singapore Institute of Manufacturing Technology, Nanyang Drive, Singapore 638075, Singapore
Abstract:Postal logistics has a complex transportation network for efficient mail delivery. Therefore, a postal logistics network consists of various functional sites with a hybrid hub-and-spoke structure. More specifically, there are multiple Delivery & Pickup Stations (D&PSs), multiple Mail Processing Centers (MPCs), and one Exchange Center (EC). In this paper, we develop two mathematical models with realistic restrictions for Korea Post for the current postal logistics network by simultaneously considering locations and allocations. We propose an Integer Linear Programming (ILP) model for transportation network organization and vehicle operation and a Mixed Integer Linear Programming (MILP) model that considers potential ECs for decision making while simultaneously regarding the EC location, transportation network organization, and vehicle operation. We use modified real data from Korea Post. Additionally, we consider several scenarios for supporting EC decision makers. The proposed models and scenarios are very useful in decision making for postal logistics network designers and operators.
Keywords:Postal logistics network  Hybrid hub-and-spoke system  MILP
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