We have talked about how trains and rails feed the supply hubs, but not so much about how hubs feed divisions in the field. As hubs are fed from the capital province by a rail network, divisions are fed by hubs over land.
Every Hub has an overland range that gives it a collection of provinces that it touches. This range is constant, but the cost of moving over each province is impacted by things like weather, terrain, rivers, and infrastructure. Motorization decreases the penalty for crossing each province, thus increasing the number of provinces a hub will touch and potentially creating greater hub density and thus greater overall supply in an area.
As has been alluded to with the phrase “hub density,” a province may be touched by multiple hubs. When multiple hubs touch a province, a ratio is created to determine what percentage of the supply requested each hub is responsible for. Every hub that touches a province lessens the supply burden of other hubs also touching the province.
In the final step, Divisions draw supply from hubs, depending upon the relationship between their current province and the hubs that touch that province. When a hub does not have enough supply to meet demands, the lack of supply is distributed evenly across all divisions currently drawing from the hub.
In older Dev Diaries developers have talked about a penalty to the amount of supply delivered to a province based upon weather, terrain, and distance. Over the summer they've decided to remove this penalty as they found it compounded in a hard-to-predict way that created bad supply and sometimes penalized having more hubs touching a province in a way that they, apparently, did not like.