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Hub Location, Routing, and Route Dimensioning: Strategic and Tactical Intermodal Transportation Hub Network Design

Author

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  • Bariş Yıldız

    (Department of Industrial Engineering, College of Engineering, Koç University, 34450 Istanbul, Turkey)

  • Hande Yaman

    (Research Centre for Operations Research and Statistics (ORSTAT), Faculty of Economics and Business, KU Leuven, 3000 Leuven, Belgium)

  • Oya Ekin Karaşan

    (Department of Industrial Engineering, Bilkent University, Bilkent, 06800 Ankara, Turkey)

Abstract

We propose a novel hub location model that jointly eliminates some of the traditional assumptions on the structure of the network and on the discount as a result of economies of scale in an effort to better reflect real-world logistics and transportation systems. Our model extends the hub literature in various facets: instead of connecting nonhub nodes directly to hub nodes, we consider routes with stopovers; instead of connecting pairs of hubs directly, we design routes that can visit several hub nodes; rather than dimensioning pairwise connections, we dimension routes of vehicles; and rather than working with a homogeneous fleet, we use intermodal transportation. Decisions pertinent to strategic and tactical hub location and transportation network design are concurrently made through the proposed optimization scheme. An effective branch-and-cut algorithm is developed to solve realistically sized problem instances and to provide managerial insights.

Suggested Citation

  • Bariş Yıldız & Hande Yaman & Oya Ekin Karaşan, 2021. "Hub Location, Routing, and Route Dimensioning: Strategic and Tactical Intermodal Transportation Hub Network Design," Transportation Science, INFORMS, vol. 55(6), pages 1351-1369, November.
    • Handle: RePEc:inm:ortrsc:v:55:y:2021:i:6:p:1351-1369
    DOI: 10.1287/trsc.2021.1070
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