Track: Master Thesis Competition

Abstract

This study used the Hub Location Problem (HLP) model to determine the location of the freight hub facilities in the railway station to carry out the loading and unloading of goods. On this HLP model, freight is carried from the origin office to the destination office using a railway. The objective of this study is to develop a model optimization to minimize the total cost of the establishment of an office at the selected railway stop station and the total cost of transportation needed to deliver the goods to the inter-office through the rail network. The model developed in this study takes into account the limitations of carriage capacity and railway routes. The decision variables including the optimal location of the hub station and the allocation of freight sent. The model was processed for one of the railway routes used. The resulting hub networks was observed using computational analysis. By using this model, decision-makers can evaluate the location selection of station facilities which can provide a minimum hub opening cost and transportation cost.