Mathematical Formulations and Solution Algorithm for Reliable Hub-And-Spoke Network Design for Container Shipping

ABSTRACT Zhao, Y.-Z.; Chen, N.; Zhou, J.-M., and Kuang, H.-B., 2019. Mathematical formulations and solution algorithm for reliable hub-and-spoke network design for container shipping. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 540–546. Coconut Creek (Florida), ISSN 0749-0208. In container shipping, the carrier may suffer substantial economic losses arising from hub failures and reactive disruption management. To solve the problem, this paper proposes a new mathematical model for the reliable hub-and-spoke network (H-SN) design, which allows multiple calls on hub-level routes and involves multiple allocation modes under multiple hub failures. The integrated model considers hub location, backup ports configuration and vessel rerouting at the same time. Next, a genetic algorithm (GA)-based method was designed to find the optimal solutions to the 0-1 nonlinear programming model in an efficient manner. After that, several computational experiments were conducted using real data. The results show that the proposed formulations and algorithm were feasible, and the integrated model could save operating cost and enhance service quality. The research findings shed new light on the network design for container shipping in maritime transport.