Multi-layer Coded Genetic Algorithm with Collaborative Construction of Two Hub-and-Spoke Networks

In order to reduce the construction cost of logistics network and make full use of logistics resources, the collaborative construction for hub-and-spoke networks is proposed. We designed the simultaneous construction of two hub-and-spoke logistics networks, in which one hub-and-spoke network selects a group of collaboration hubs from another hub-and-spoke network for each hub, and both networks can use collaboration hubs. The goal is to minimize the sum of the construction costs and collaboration costs of the two hub-and-spoke networks. First, the mixed integer programming model is used to describe the problem. Then, according to the complexity of the problem, a multi-layer coded genetic algorithm is designed to solve the problem. Finally, the parameter sensitivity analysis is carried out with a case to analyze the influences of the parameters on costs, logistics network structure and cooperation hub, in which one chromosome represents two hub-and-spoke networks. The analysis results show that in the collaborative construction of two networks, the amount of traffic transferred from one network to another has a significant impact on the network structure and construction cost of the two networks. Collaborative construction can systematically optimize two hub-and-spoke networks, reduces costs and effectively integrate logistics resources.