Design of hybrid multimodal logistic hub network with postponement strategy

Abstract

This paper suggests a method allowing to design a hybrid logistic hub network in the context of mass customization, postponement being performed in hubs having industrial capabilities in addition to logistic ones. We propose a two-stage mathematical mixed integer linear programming model for: (1) logistic hub network design (2) postponement location in the designed network. The suggested model manages characteristics not yet taken into account simultaneously in the literature: hierarchical logistic structure, postponement strategy, multi-commodity, multi-packaging of goods (raw materials or components vs. final products), multi-period planning. The solutions are compared through service level and logistic costs.