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Allocation strategies in hub networks

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  • Yaman, Hande
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    Abstract

    In this paper, we study allocation strategies and their effects on total routing costs in hub networks. Given a set of nodes with pairwise traffic demands, the p-hub median problem is the problem of choosing p nodes as hub locations and routing traffic through these hubs at minimum cost. This problem has two versions; in single allocation problems, each node can send and receive traffic through a single hub, whereas in multiple allocation problems, there is no such restriction and a node may send and receive its traffic through all p hubs. This results in high fixed costs and complicated networks. In this study, we introduce the r-allocation p-hub median problem, where each node can be connected to at most r hubs. This new problem generalizes the two versions of the p-hub median problem. We derive mixed-integer programming formulations for this problem and perform a computational study using well-known datasets. For these datasets, we conclude that single allocation solutions are considerably more expensive than multiple allocation solutions, but significant savings can be achieved by allowing nodes to be allocated to two or three hubs rather than one. We also present models for variations of this problem with service quality considerations, flow thresholds, and non-stop service.

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    Bibliographic Info

    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 211 (2011)
    Issue (Month): 3 (June)
    Pages: 442-451

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    Handle: RePEc:eee:ejores:v:211:y:2011:i:3:p:442-451

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    Web page: http://www.elsevier.com/locate/eor

    Related research

    Keywords: Location Hub location p-Hub median Single allocation Multiple allocation;

    References

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    Cited by:
    1. Alumur, Sibel A. & Yaman, Hande & Kara, Bahar Y., 2012. "Hierarchical multimodal hub location problem with time-definite deliveries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1107-1120.
    2. F. Parvaresh & S. Hashemi Golpayegany & S. Moattar Husseini & B. Karimi, 2013. "Solving the p-hub Median Problem Under Intentional Disruptions Using Simulated Annealing," Networks and Spatial Economics, Springer, vol. 13(4), pages 445-470, December.
    3. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2012. "Hub location under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(4), pages 529-543.
    4. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    5. Aros-Vera, Felipe & Marianov, Vladimir & Mitchell, John E., 2013. "p-Hub approach for the optimal park-and-ride facility location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 277-285.

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