Logistics Hub Location Optimization: A K-Means and P-Median Model Hybrid Approach Using Road Network Distances

M. A. Rahman, M. A. Basheer*, Z. Khalid, M. Tahir, M. Uppal

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review

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.

Original languageEnglish
Pages (from-to)219-226
Number of pages8
JournalTransportation Research Procedia
Volume84
DOIs
StatePublished - 2025
Event1st Internation Conference on Smart Mobility and Logistics Ecosystems, SMiLE 2024 - Dhahran, Saudi Arabia
Duration: 17 Sep 202419 Sep 2024

Bibliographical note

Publisher Copyright:
© 2024 The Authors. Published by ELSEVIER B.V.

Keywords

  • K-Means
  • Last mile delivery
  • Machine Learning
  • Optimization
  • P-Median
  • Urban logistics

ASJC Scopus subject areas

  • Transportation

Fingerprint

Dive into the research topics of 'Logistics Hub Location Optimization: A K-Means and P-Median Model Hybrid Approach Using Road Network Distances'. Together they form a unique fingerprint.

Cite this