Complex package distribution systems are designed using idealizations of network geometries, operating costs, demand and customer distributions, and routing patterns. The goal is to find simple, yet realistic, guidelines to design and operate a network integrated both by transportation mode and service level; i.e., overnight (express) and longer (deferred) deadlines. The decision variables and parameters that define the problem are presented along with the models to approximate total operating cost. The design problem is then reduced to a series of optimization subproblems that can be...