Abstract

Last-mile delivery bears a significant impact in today’s competitive environment as it contains the major amount of cost in the supply chain. Here Hub and Spoke model is used as network optimization strategy to decrease the delivery cost. Besides the crowdsourced approach is one of the key topics and is continuously being studied to reduce delivery time and costs. This paper proposes a mathematical model for a crowdsourced supply chain network using hub and spoke model to minimize the transportation cost of the system. The analysis tries to test and quantify the performance of the model using the supply chain of a renowned company in Bangladesh. The model generates locations for the echelons and scales a grid in which the factories, warehouses, sales outlets, customer locations, and the drivers reside. In the model, two alternative methods are used for last-mile delivery to make a comparison of the transportation cost. By using a linear programming model in MATLAB, the effects of crowdsourcing on the supply chain are emphasized. The result is evaluated and analyzed for practical use.