This paper deals with a hub location-routing problem (HLRP) which integrates the hub location problem (HLP) and the multi-hub vehicle routing problem (MH-VRP) in parcel delivery service. The HLRP is very difficult to be solved since it is composed of two NP-hard problems, the HLP and the MH-VRP. To solve these problems simultaneously we present a novel solution framework which divides the probl...

Abstract Many of air cargo companies adapt the hub-and-spokes system where economies of scale exist in the transportation cost. In this paper, we formulate economies of scale using nonlinear cost function of distances and demands, and analyze how the change of the transportation cost affects single hub location of air cargo using the generalized Weber problem on the regular demand points of one...