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Continuous and discrete demand hub location problems

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  • Campbell, James F.
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    Abstract

    Hub and spoke designs have been adopted by many air carriers and motor carriers in recent years. This paper compares rectilinear distance transportation costs for hub networks with two types of demand to investigate how well an idealized model predicts the cost for real-world demand. The idealized model approximates the transportation cost for a hub network serving a continuous uniform distribution of demand in a square service region with equal origin-destination flows. The cost for the approximation formula is compared to the optimal cost for discrete demand hub location problems. The ability of the approximation formula to predict the optimal transportation cost is measured, and the quality of the prediction is related to characteristics of the discrete demand.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 27 (1993)
    Issue (Month): 6 (December)
    Pages: 473-482

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    Handle: RePEc:eee:transb:v:27:y:1993:i:6:p:473-482

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    Cited by:
    1. Tsao, Yu-Chung & Mangotra, Divya & Lu, Jye-Chyi & Dong, Ming, 2012. "A continuous approximation approach for the integrated facility-inventory allocation problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 216-228.
    2. Vladimir Marianov & Daniel Serra & Charles Revelle, 1997. "Location of hubs in a competitive environment," Economics Working Papers 227, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Campbell, James F., 2013. "A continuous approximation model for time definite many-to-many transportation," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 100-112.
    4. Cui, Tingting & Ouyang, Yanfeng & Shen, Zuo-Jun Max J, 2010. "Reliable Facility Location Design under the Risk of Disruptions," University of California Transportation Center, Working Papers qt5sh2c7pw, University of California Transportation Center.
    5. Li, Xiaopeng & Ouyang, Yanfeng, 2010. "A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 535-548, May.

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