Integrated Hub-and-Spoke Network Optimization for Inter-Island Freight Distribution in Eastern Indonesia: A Mixed-Method Logistics Framework
DOI:
https://doi.org/10.61978/logistica.v4i1.1735Keywords:
inter-island freight distribution, hub-and-spoke logistics, maritime logistics optimization, cargo consolidation, vessel utilization, logistics network design, Eastern IndonesiaAbstract
Inter-island freight distribution in Eastern Indonesia faces high logistics costs, low vessel utilization, and fragmented freight flows due to dispersed islands, long distances, and weak port-hinterland integration. This study develops an integrated hub-and-spoke logistics framework to improve efficiency by optimizing hub selection, cargo allocation, routing, shipment frequency, and vessel utilization. A mixed-method design combined qualitative stakeholder analysis with logistics network optimization. Semi-structured interviews with twelve stakeholders—shipping companies, port operators, logistics providers, government agencies, cargo owners, and academics—were analyzed thematically to identify operational issues, translated into decision variables for a mixed-integer linear programming optimization framework, complemented by sensitivity analysis of demand variability, fuel prices, vessel capacity, and schedule disruptions. Findings show the existing system remains fragmented and demand-driven, with vessel utilization at 55–65%, below the preferred 80% threshold. Stakeholders identified cargo consolidation, hub-port development, route optimization, scheduling, port-hinterland integration, and digital information sharing as key performance determinants. Strategically located hubs can reduce port calls, improve cargo aggregation, and lower costs, though direct shipping remains suitable for high-volume or time-sensitive cargo—suggesting a hybrid network combining hub-and-spoke and direct routing offers greater flexibility. Digital coordination among stakeholders is essential for schedule reliability. The study concludes that the integrated framework combines stakeholder knowledge with optimization principles, offering practical guidance for reducing costs and strengthening regional maritime connectivity in Eastern Indonesia.
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