Proceedings of the 9th International Conference on Engineering Management and the 2nd Forum on Modern Logistics and Supply Chain Management (ICEM-MLSCM 2024)

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A Multiple Allocation Hub-and-Spoke Network Considering Capacity Selection in a Competitive Environment

Authors
Kejie Ni1, *
1Shanghai Maritime University, Shanghai, 201306, China
*Corresponding author. Email: 1035987040@qq.com
Corresponding Author
Kejie Ni
Available Online 1 October 2024.
DOI
10.2991/978-94-6463-531-7_15How to use a DOI?
Keywords
Competition; Capacity Selection; Multiple Allocation
Abstract

The hub-and-spoke network is a crucial network structure in the modern logistics industry, significantly enhancing transportation efficiency. However, issues such as hub congestion and failure cannot be overlooked, as they have a direct impact on the operational effectiveness of this network model. Furthermore, due to substantial market potential attracting continuous capital influx, there is excessive competition within the industry leading to inefficient resource utilization. In this context, we investigate the design problem of a multiple allocation hub-and-spoke network considering capacity selection under competitive environments. To address this issue, we construct a two-layer programming model: the upper layer represents the leader’s mixed integer programming model concerning hub layout schemes while the lower layer depicts followers’ mixed integer programming models based on their observations of leader behavior and its influence on their own hub layout schemes. Given the complexity involved in solving this two-layer programming model and aiming to reduce computational complexity while ensuring solution quality, we have designed a variable neighbourhood search algorithm for solving it. The results indicate that factors such as number of hubs, decision-making order, consideration of competitors’ behavior will affect hub location schemes, capacity decisions and market share among participants in market competition.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th International Conference on Engineering Management and the 2nd Forum on Modern Logistics and Supply Chain Management (ICEM-MLSCM 2024)
Series
Advances in Engineering Research
Publication Date
1 October 2024
ISBN
978-94-6463-531-7
ISSN
2352-5401
DOI
10.2991/978-94-6463-531-7_15How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kejie Ni
PY  - 2024
DA  - 2024/10/01
TI  - A Multiple Allocation Hub-and-Spoke Network Considering Capacity Selection in a Competitive Environment
BT  - Proceedings of the 9th International Conference on Engineering Management and the 2nd Forum on Modern Logistics and Supply Chain Management (ICEM-MLSCM 2024)
PB  - Atlantis Press
SP  - 115
EP  - 124
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-531-7_15
DO  - 10.2991/978-94-6463-531-7_15
ID  - Ni2024
ER  -