Hub-and-spoke airline network design under competitive market

Yang, Ta‐Hui; Huang, Yu Tsung

doi:10.1080/21681015.2015.1029549

Cited by 11 publications

(3 citation statements)

References 28 publications

(31 reference statements)

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“…For the problem of considering both service pricing and pivot point selection in a competitive environment, scholars mainly divided the research on customer demand distribution into the following aspects: path cost [29][30][31][32], price [23,[33][34][35], cost and price [14,16], route cost and transportation time [36][37][38][39][40], cost and service [41,42]. Through the review, it is found that few literature consider both cost and price factors, and the previous studies mostly take distance, cost, and time as the basic parameters.…”

Section: Literature Reviewmentioning

confidence: 99%

Hub-and-Spoke Logistics Network Considering Pricing and Co-Opetition

Zhou

Zhao

et al. 2021

Sustainability

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With the rapid development of the logistics market, the construction of an efficient “channel + hub + network” logistics system, that is, a hub-and-spoke logistics network, is of great importance to enterprises. In particular, how to reduce costs and increase efficiency in both the construction of network facilities and actual operations, and to formulate reasonable prices for the logistics service needs in the entire market are crucial strategies and decisions for enterprises. Under such a background, this article starts from the perspective of duopoly logistics enterprises that jointly build networks and allow the transfer of surplus capacity and carbon credits, and studies the hub-and-spoke logistics network design that also considers the relationship between service pricing and co-opetition. Considering the corporate profit and difficulty of implementation as a whole, the co-opetition is a better choice than the complete competition and perfect cooperation. In addition, the remaining capacity of the company, the transfer of carbon credits, the joint construction and sharing of hubs, and strategic cooperation in the area of corporate common pricing under the price framework agreement are conducive to the realization of an increase in corporate operating profits, a better market share and more favorable pricing.

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Section: Literature Reviewmentioning

confidence: 99%

Hub-and-Spoke Logistics Network Considering Pricing and Co-Opetition

Zhou

Zhao

et al. 2021

Sustainability

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“…It also gathers logistics demands [13]. The research of huband-spoke network model focuses on the selection of nonhub node assignment [14], the cost discount rate setting between hub nodes [15], the connection constraint between nonhub nodes [16], and the multilevel [17]. At present, the hub-and-spoke network model has been described integrally [18], and it has begun to expand into new research directions in combination with applications in different fields.…”

Section: State Of the Artmentioning

confidence: 99%

“…For example, a hybrid hub-and-spoke postal logistics network was studied by LEE, and Moon [19]. The hub-and-spoke route network in the competitive market was studied by Yang, and Huang [20], and the secondary diffusion of Marine species introduced in Indonesia using hub-and-spoke networks was studied by Azmi, Hewitt, and Campbell [21]. However, applying the design of the hub-and-spoke network to the network planning field of URL is a relatively new idea.…”

Section: State Of the Artmentioning

confidence: 99%

Establishing a Network Planning Model of Urban-Rural Logistics Based on Hub-and-Spoke Network

Dai

2019

Teh. vjesn.

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The demand of urban-rural logistics (URL) has scattered characteristics, which result in difficulty in applying the existing network planning model of URL. A network planning model of URL was established to create a planning scheme that can meet scattered logistics demands. This model is combined with the hub-and-spoke network modeling method, including the hybrid hub-and-spoke network, single-assignment, and hub node quantity constraints. For this model, the minimum total cost was taken as the objective function, whereas the hub node location, assignment relationship, and direct path planning were taken as decision variables. Moreover, the model was solved using the tabu search algorithm. Finally, the model was applied to the network planning example of URL in Nanjing-Zhenjiang-Yangzhou, China. Results indicate that the optimal hub location and quantity, the optimal distribution path, and the most reasonable straight-through route can be determined by the hub-and-spoke network planning model of URL. In addition, the URL network shows the form of two-level hybrid hub-and-spoke with multi hubs and single distribution, in which the scattered demands can be concentrated on a few hub nodes and axes. Findings indicate that the network planning problem of URL under scattered demands can be effectively solved by the new model.

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