Modeling and Solving of Hierarchical Transport Systems such as Hub-Spokes/Point-to-Point and/or Consolidated/Direct Delivery in the Uniform Boundless Plane

Abstract

A “Hierarchical Transport Model” is proposed and formulated, so that it could simulate various types of transport systems, such as hub-spokes/point-to-point concept in air and sea market, or consolidation/direct delivery systems for the macroscopic wide-area analysis and for the assessment of the characteristics of these transport systems. This model can derive the cost-minimum transport pattern based on dynamic programming strategy considering various features of the given factors such as “distance attenuation” in demand and “economies of scale” in cost.