Logistics Network Design Considering the Location of Logistics Hubs: A Case Study of Western Iran

Today, logistics is recognized as one of the most important factors in the development of countries. One of the characteristics of an efficient logistics structure is the design of a suitable logistics network with the requirements of the region and the existing infrastructure to meet the commercial and industrial needs at different scales. Facility location is the most important factor for the success of the facility and the designed network. One of the interesting topics in location issues is the hub location issue. Hubs are facilities that are used as our points of integration, communication, and switching between source and destination nodes. In a hub network, non-hub nodes are assigned to the hubs individually or multiple times so that the total system cost is minimized and service requirements are met. Given the current economic conditions and competitive environment, logistics hubs play an important role in the logistics network of companies, especially on a large scale, for countries. The function of logistics hubs is similar to that of logistics centers, but due to the network structure, they are known as logistics hubs. In this paper, the problem of logistics network design with emphasis on the location of logistics hubs is investigated. The mathematical model of the problem is multidimensional and unallocated, and the designed hub network is an incomplete network. In this case, the purpose is to meet the requirements of the mathematical model while minimizing the costs of a logistics network consisting of three costs of facility construction, interstate network construction, and transportation.