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A hybrid heuristic for the uncapacitated single allocation hub location problem

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  • Chen, Jeng-Fung
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    Abstract

    The uncapacitated single allocation hub location problem (USAHLP), with the hub-and-spoke network structure, is a decision problem in regard to the number of hubs and location-allocation. In a pure hub-and-spoke network, all hubs, which act as switching points for internodal flows, are interconnected and none of the non-hubs (i.e., spokes) are directly connected. The key factors for designing a successful hub-and-spoke network are to determine the optimal number of hubs, to properly locate hubs, and to allocate the non-hubs to the hubs. In this paper two approaches to determine the upper bound for the number of hubs along with a hybrid heuristic based on the simulated annealing method, tabu list, and improvement procedures are proposed to resolve the USAHLP. Computational experiences indicate that by applying the derived upper bound for the number of hubs the proposed heuristic is capable of obtaining optimal solutions for all small-scaled problems very efficiently. Computational results also demonstrate that the proposed hybrid heuristic outperforms a genetic algorithm and a simulated annealing method in solving USAHLP.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 35 (2007)
    Issue (Month): 2 (April)
    Pages: 211-220

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    Handle: RePEc:eee:jomega:v:35:y:2007:i:2:p:211-220

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    Keywords: Hub-and-spoke Simulated annealing Tabu list Uncapacitated hub location problem;

    References

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    1. Skorin-Kapov, Darko & Skorin-Kapov, Jadranka, 1994. "On tabu search for the location of interacting hub facilities," European Journal of Operational Research, Elsevier, vol. 73(3), pages 502-509, March.
    2. Mayer, Gabriela & Wagner, Bernd, 2002. "HUBLocator : an exact solution method for the multiple allocation hub location problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 18962, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Neil Bania & Paul W. Bauer & Thomas J. Zlatoper, 1992. "U.S. air passenger service: a taxonomy of route networks, hub locations, and competition," Working Paper 9216, Federal Reserve Bank of Cleveland.
    4. Abdinnour-Helm, Sue, 1998. "A hybrid heuristic for the uncapacitated hub location problem," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 489-499, April.
    5. Boland, Natashia & Krishnamoorthy, Mohan & Ernst, Andreas T. & Ebery, Jamie, 2004. "Preprocessing and cutting for multiple allocation hub location problems," European Journal of Operational Research, Elsevier, vol. 155(3), pages 638-653, June.
    6. Aykin, Turgut, 1994. "Lagrangian relaxation based approaches to capacitated hub-and-spoke network design problem," European Journal of Operational Research, Elsevier, vol. 79(3), pages 501-523, December.
    7. Ernst, Andreas T. & Krishnamoorthy, Mohan, 1998. "Exact and heuristic algorithms for the uncapacitated multiple allocation p-hub median problem," European Journal of Operational Research, Elsevier, vol. 104(1), pages 100-112, January.
    8. Kuby, Michael J. & Gray, Robert Gordon, 1993. "The hub network design problem with stopovers and feeders: The case of Federal Express," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(1), pages 1-12, January.
    9. Campbell, James F., 1994. "Integer programming formulations of discrete hub location problems," European Journal of Operational Research, Elsevier, vol. 72(2), pages 387-405, January.
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    Cited by:
    1. Muppani (Muppant), Venkata Reddy & Adil, Gajendra Kumar, 2008. "Efficient formation of storage classes for warehouse storage location assignment: A simulated annealing approach," Omega, Elsevier, vol. 36(4), pages 609-618, August.
    2. Ambrosino, Daniela & Sciomachen, Anna, 2012. "Hub locations in urban multimodal networks," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 51, pages 6.
    3. Roni, Md.S. & Eksioglu, Sandra D. & Searcy, Erin & Jha, Krishna, 2014. "A supply chain network design model for biomass co-firing in coal-fired power plants," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 115-134.
    4. Yaman, Hande, 2011. "Allocation strategies in hub networks," European Journal of Operational Research, Elsevier, vol. 211(3), pages 442-451, June.
    5. Omar Ben-Ayed, 2012. "Redesigning the inter-facility network of a parcel distribution company in a developing country," International Journal of Services, Economics and Management, Inderscience Enterprises Ltd, vol. 4(1), pages 27-42.

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