European Journal of Operational Research | 2021
A two-stage robust model for express service network design with surging demand
Abstract
Abstract In the periods following sales on online shopping carnivals, demand for express transportation is expected to precipitously surge within a short time, potentially causing express system overload and delivery delays. In this study, we address a service network design problem of a hub-and-spoke structured express transportation network during periods of surging demands. We consider a new strategy of upgrading existing spokes into temporary hubs to expand the network capacity with low costs. We propose a two-stage bi-objective robust model based on a time-space network to integrate the spoke-upgrading selection, service-scheduling, and vehicle-routing for designing an express service network that is both efficient and economic. To solve the model, we develop an enhanced column-and-constraint generation algorithm. Finally, a case study of a real express logistics company in China is demonstrated to validate the effectiveness of the proposed strategy and to offer decision support in real problems.