Models and methods for logistics hub location: A review towards transportation networks design

Abstract

Logistics hubs affect the distribution patterns in transportation networks since they are flowconcentrating structures. Indeed, the efficient moving of goods throughout supply chains depends on the design of such networks. This paper presents a literature review on the logistics hub location problem, providing an outline of modeling approaches, solving techniques, and their applicability to such context. Two categories of models were identified. While multi-criteria models may seem best suited to find optimal locations, they do not allow an assessment of the impact of new hubs on goods flow and on the transportation network. On the other hand, single-criterion models, which provide location and flow allocation information, adopt network simplifications that hinder an accurate representation of the relationship between origins, destinations, and hubs. In view of these limitations we propose future research directions for addressing real challenges of logistics hubs location regarding transportation networks design.