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Mathematical Conditions for Profitability of Simple Logistic System Transformation to the Hub and Spoke Structure

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Uncertainty and Imprecision in Decision Making and Decision Support: New Challenges, Solutions and Perspectives (IWIFSGN 2018)

Abstract

Optimization of logistic systems is one of the most important challenges in the modern world. Fast, cheap and reliable transportation systems are necessary to warrant stable development of global economy. To optimize the transportation system it is necessary to build a model of it. Transportation systems are usually modeled using graphs. In such graphs the nodes are equivalents of railway stations, bus stops, airports, etc., and the edges model connections or transfers among them. Graph models of logistic systems are often unstructured with accidental connections between nodes. However, optimization of such irregular connection structure can be done by conversion to a hub & spoke network structure. After this conversion a new shape of the logistic network is created, where the identified main nodes - hubs have direct, fast and high capacity connections among themselves, and the secondary nodes - spokes are connected only with their hubs. In this new graph there are only a few types of connections, having often very similar properties. It is possible to maintain almost equal transportation parameters across the whole network. This means a great progress compared to the traditional “peer-to-peer" network. In return, it is possible to improve the frequency and/or duration of journeys in the modified graph. First of all, though, it is necessary to establish the profitability conditions for such a transformation. This subject is discussed in the present work.

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Correspondence to Jan W. Owsiński .

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Mażbic-Kulma, B., Owsiński, J.W., Stańczak, J., Barski, A., Sȩp, K. (2021). Mathematical Conditions for Profitability of Simple Logistic System Transformation to the Hub and Spoke Structure. In: Atanassov, K., et al. Uncertainty and Imprecision in Decision Making and Decision Support: New Challenges, Solutions and Perspectives. IWIFSGN 2018. Advances in Intelligent Systems and Computing, vol 1081. Springer, Cham. https://doi.org/10.1007/978-3-030-47024-1_37

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