Title: Selection model and algorithm of logistics corridor based on the network utility

Authors: Wenliang Bian; Lei Chen; Lina Chuan; Yong Zhao

Addresses: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China ' State Grid Tianjin Electric Power Company, State Grid Corporation of China (SGCC), Tianjin 300010, China ' Beijing Branch, Postal Savings Bank of China, Beijing 100600, China ' State Grid Tianjin Electric Power Company, State Grid Corporation of China (SGCC), Tianjin 300010, China

Abstract: With the development of logistics industry in China, logistics networks become increasingly important. Especially, people who manages a nation-wide or world-wide company is eager to know how to make a better decision to choose corridors in complex networks. In order to help them to solve this problem, this paper expands two concepts of centrality, the node degree centrality and the edge betweenness centrality, as the basis for further analysis. Then, the network utility is defined based on which a logistics corridor selection model is proposed. Meanwhile, this model also takes not only the corridor's travel time and construction costs but its impact on the whole network into consideration. Subsequently, a combination algorithm among Dijkstra, Floyd and the ith shortest path algorithm is developed to solve the theoretical model. In addition, a numerical experiment is provided to verify the validity of the model and algorithm. The results from this paper implicate that managers can make a balance between operational factors and strategic factors to better solve the decision making problem in logistics network development by this feasible decision making model.

Keywords: logistics corridor; degree centrality; betweenness centrality; network utility.

DOI: 10.1504/IJMTM.2018.093364

International Journal of Manufacturing Technology and Management, 2018 Vol.32 No.4/5, pp.488 - 507

Received: 03 Jan 2017
Accepted: 27 Mar 2017
Published online: 25 Jul 2018 *

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