Multimodal uncapacitated hub location problems with multi-commodities : an application in Finland supply chain

Abstract

This thesis explores the multimodal multi-commodity hub location problem, inspired by real-world hub networks. This research aims to optimally design the hub network in Finland where different transportation modes, including trucks, trailers, full trucks, and trains, are utilized, focusing on location-allocation decisions. This research integrates transportation and handling costs in the network into a single framework and forms the objective function based on these two parameters. The model permits multiple transportation modes between nodes and hubs, as well as between hubs. Demands are considered deterministic and asymmetric. A mixed-integer linear programming model is developed to select the optimal location of hubs and allocation strategy, coupled with determining the best transportation mode in each connection route. Computational tests using real data from a case company reveal that a six-hub configuration is the most cost-effective among various network structures. The final results provide guidance to 3PL companies, shippers, logistics service providers (LSPs), and infrastructure owners (e.g., governments) on optimizing distribution networks and reducing transportation costs while handling diverse products and vehicles. It also provides policymakers with strategic advice on facility and infrastructure planning.