A multi‐objective approach to the parcel express service delivery problem

Parcel express service in many countries assumes door‐to‐door delivery of parcels and small packages in the fastest possible way. Delivery companies usually organize hub delivery networks, as flows between hubs are characterized by the economy of scale effect. At hubs, parcels are exchanged across vans, trucks, and planes. To organize parcel delivery in a specific region, the parcel delivery company must make appropriate decisions about the total number of parcel delivery hubs, their locations, and the allocation of demand for facilities' services to facilities. These issues are modeled in this paper as a multi‐objective problem. The model developed is based on compromise programming and genetic algorithms. We also demonstrate in the paper an interactive manner in which a defined problem can be solved. The proposed model could be implemented in large‐scale networks. The paper also shows a case study of parcel delivery service in Serbia. Copyright © 2013 John Wiley & Sons, Ltd.