Package delivery route optimization with tight travel time

Komarudin, Apratimadewi Nuraziza Abyantara

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In the package delivery and courier services industry, delivery time is one crucial factor that influences customer satisfaction. While most delivery package service companies implement hub- and-spoke network design to achieve economies of scale, same-day delivery services between every origin-destination pair can be ensured by designing a delivery network with tight travel time constraints. This study focuses on designing method that could answer the main decisions in hub-and-spoke network design—which are: the optimal number and locations of hubs, along with the allocations of other nodes to hubs—and to transform such hub-and-spoke network design into a routed one which fulfills both tight travel time and minimization of vehicles needed. Uncapacitated Single Allocation p-Hub Median Problem and K-Means clustering method were used to design the initial hub-and-spoke network. The directly linked network then transformed into a routed network by implementing the Local Search algorithm and an Integer Programming model. The optimal network design was chosen by considering the minimum number of vehicles needed. The method was then tested using a case study of a package delivery start-up company operating in Jakarta. Travel time data were collected between every delivery origin-destination pair. Results from both methods shown that 3 is the optimum number of hubs.

Original languageEnglish
Title of host publication2019 the 5th International Conference on Industrial and Business Engineering, ICIBE 2019
PublisherAssociation for Computing Machinery
Pages39-43
Number of pages5
ISBN (Electronic)9781450376532
DOIs
Publication statusPublished - 27 Sep 2019
Event5th International Conference on Industrial and Business Engineering, ICIBE 2019 - Hong Kong, Hong Kong
Duration: 27 Sep 201929 Sep 2019

Publication series

NameACM International Conference Proceeding Series

Conference

Conference5th International Conference on Industrial and Business Engineering, ICIBE 2019
CountryHong Kong
CityHong Kong
Period27/09/1929/09/19

Keywords

  • Heuristic
  • Hub-and-Spoke
  • Vehicle Routing

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  • Cite this

    Komarudin, & Abyantara, A. N. (2019). Package delivery route optimization with tight travel time. In 2019 the 5th International Conference on Industrial and Business Engineering, ICIBE 2019 (pp. 39-43). (ACM International Conference Proceeding Series). Association for Computing Machinery. https://doi.org/10.1145/3364335.3364392