Express Shipment Service Network Design with Complex Routes

Quesada Perez, José Miguel;Tancrez, Jean-Sébastien;Lange, Jean-Charles
(2020) Computers & Operations Research — Vol. 114, p. 104810 (2020)

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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%).
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Quesada Perez, J. M., Tancrez, J.-S., & Lange, J.-C. (2020). Express Shipment Service Network Design with Complex Routes. Computers & Operations Research, 114, 104810. https://doi.org/10.1016/j.cor.2019.104810 (Original work published 2020)