  This study aims to propose effective modeling and approach for designing a
logistics network in the urban area in order to offer an efficient flow
distribution network as a competitive strategy in the logistics industry where
demand is sensitive to both price and time. A multi-stage approach is
introduced to select the number of hubs and allocate spokes to the hubs for
flow distribution and hubs' location detection. Specifically, a fuzzy
clustering model with the objective function is to minimize the approximate
transportation cost is employed, in the next phase is to focus on balancing the
demand capacity among the hubs with the help of domain experts, afterward, the
facility location vehicle routing problems within the network is introduced. To
demonstrate the approach's advantages, an experiment was performed on the
designed network and its actual transportation cost for the real operational
data in which specific to the Ho Chi Minh city infrastructure conditions.
Additionally, we show the flexibility of the designed network in the flow
distribution and its computational experiments to develop the managerial
insights which contribute to the network design decision-making process.
