An Optimization of the Hub-and-Spoke Distribution Network in United States European Command

The current hub-and-spoke network in the European Theater is made up of locations built and organized around a Cold War threat. The threat of large-scale attrition warfare seems to have passed, and the threat of multiple, smaller scale contingencies has placed greater demands on the US military's ability to transport equipment and personnel to multiple locations simultaneously. This research effort utilizes a Multiple Objective Linear Programming (MOLP) model to analyze optimal hub locations in USEUCOM. The model used to analyze the network was developed in Microsoft Excel and followed MOLP techniques to determine the trade-offs between the two constructs of importance time and cost. The results of the multiple model runs show that the Aviano hub alternative provides the least expensive and least time consuming option of the four alternatives considered. This came as no surprise. The use of a hub location that coincides with one of the demand locations eliminates the need for forward movement from the hub to the demand location. The reduction of cost and time in the optimal network should result in an overall savings to the entire network cost.

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