Cost Optimatize Algorithm for Hub-and-Spoke Logistic Network

Many logistic system rely on a network of hub facilities to help concentrate flows of freight or passengers to exploit the economies of scale in transportation. Wheras , "bypass cost " and "congestion effect" also exist in hub-and-spoke network .This paper address a novel approach which unite economies of scale and "bypass cost" and reports on implementation of a route optimazation algorithm .Finally ,computational work was performed on a personal computer with data for postal operations in Australia.