Advanced Search
MyIDEAS: Login to save this article or follow this journal

An Efficient Procedure for Designing Single Allocation Hub and Spoke Systems


Author Info

  • Hasan Pirkul

    (School of Management, University of Texas at Dallas, P.O. Box 830688, Richardson, Texas 75083)

  • David A. Schilling

    (Department of Management Science, Fisher College of Business, Ohio State University, 2100 Neil Avenue, Columbus, Ohio 43210)

Registered author(s):


    Given the widespread use of the hub and spoke network architecture and its growing importance to competitiveness in logistics, communication, and mass transportation, there has been considerable interest by practitioners and researchers alike in finding efficient methods for designing such networks. This paper provides a method that delivers both high quality solutions and firm measures of that quality, and allows problems to be solved in reasonable time on a desktop computer. The approach begins with a previously proposed tight linear programming formulation and uses subgradient optimization on a lagrangian relaxation of the model. However, to dramatically improve the performance of this approach, we augment a subproblem of the lagrangian relaxation model with a cut constraint. In computational experiments on eighty-four standard test problems, average gaps are 0.048%. Maximum gaps are under 1% while average solution times on a Pentium-166 are under five minutes.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 44 (1998)
    Issue (Month): 12-Part-2 (December)
    Pages: S235-S242

    as in new window
    Handle: RePEc:inm:ormnsc:v:44:y:1998:i:12-part-2:p:s235-s242

    Contact details of provider:
    Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page:
    More information through EDIRC

    Related research

    Keywords: Location; Transportation; Hubs; Heuristics;


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Yaman, Hande, 2009. "The hierarchical hub median problem with single assignment," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 643-658, July.
    2. Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
    3. Jeong, Seung-Ju & Lee, Chi-Guhn & Bookbinder, James H., 2007. "The European freight railway system as a hub-and-spoke network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 523-536, July.
    4. Zhang, Chuqian & Wan, Yat-wah & Liu, Jiyin & Linn, Richard J., 2002. "Dynamic crane deployment in container storage yards," Transportation Research Part B: Methodological, Elsevier, vol. 36(6), pages 537-555, July.
    5. Pirkul, Hasan & Soni, Samit, 2003. "New formulations and solution procedures for the hop constrained network design problem," European Journal of Operational Research, Elsevier, vol. 148(1), pages 126-140, July.
    6. Matsubayashi, Nobuo & Umezawa, Masashi & Masuda, Yasushi & Nishino, Hisakazu, 2005. "A cost allocation problem arising in hub-spoke network systems," European Journal of Operational Research, Elsevier, vol. 160(3), pages 821-838, February.
    7. 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.
    8. Yaman, Hande, 2011. "Allocation strategies in hub networks," European Journal of Operational Research, Elsevier, vol. 211(3), pages 442-451, June.
    9. Adler, Nicole & Berechman, Joseph, 2001. "Evaluating optimal multi-hub networks in a deregulated aviation market with an application to Western Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(5), pages 373-390, June.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:12-part-2:p:s235-s242. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.