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Logistics Hub Location Optimization: A K-Means and P-Median Model Hybrid Approach Using Road Network Distances (preprint)
arxiv; 2023.
Preprint
in English
| PREPRINT-ARXIV | ID: ppzbmed-2308.11038v1
ABSTRACT
Logistic hubs play a pivotal role in the last-mile delivery distance; even a slight increment in distance negatively impacts the business of the e-commerce industry while also increasing its carbon footprint. The growth of this industry, particularly after Covid-19, has further intensified the need for optimized allocation of resources in an urban environment. In this study, we use a hybrid approach to optimize the placement of logistic hubs. The approach sequentially employs different techniques. Initially, delivery points are clustered using K-Means in relation to their spatial locations. The clustering method utilizes road network distances as opposed to Euclidean distances. Non-road network-based approaches have been avoided since they lead to erroneous and misleading results. Finally, hubs are located using the P-Median method. The P-Median method also incorporates the number of deliveries and population as weights. Real-world delivery data from Muller and Phipps (M&P) is used to demonstrate the effectiveness of the approach. Serving deliveries from the optimal hub locations results in the saving of 815 (10%) meters per delivery.
Full text:
Available
Collection:
Preprints
Database:
PREPRINT-ARXIV
Main subject:
COVID-19
Language:
English
Year:
2023
Document Type:
Preprint
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