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Enumeration and Search Procedures for a Hub Location Problem with Economies of Scale

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  • John Klincewicz

Abstract

Within a communications or transportation network, in which a number of locations exchange material or information, hubs can be used as intermediate switching points. In this way, traffic can be consolidated on inter-hub links and, thus, achieve economies of scale in transport costs. Recently, O'Kelly and Brian in 1998 proposed a model (termed the FLOWLOC model) that treats these economies of scale by means of piecewise-linear concave cost functions on the interhub arcs. We show that, for a fixed set of hubs, the FLOWLOC model can be solved using the classic Uncapacitated Facility Location Problem (UFLP). This observation then motivates an optimal enumeration procedure for the FLOWLOC model, as well as some search heuristics that are based upon tabu search and greedy random adaptive search procedures (GRASP). These search procedures would be especially applicable for large-sized problems. Some computational experience is described. Copyright Kluwer Academic Publishers 2002

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  • John Klincewicz, 2002. "Enumeration and Search Procedures for a Hub Location Problem with Economies of Scale," Annals of Operations Research, Springer, vol. 110(1), pages 107-122, February.
    • Handle: RePEc:spr:annopr:v:110:y:2002:i:1:p:107-122:10.1023/a:1020715517162
    DOI: 10.1023/A:1020715517162
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    Cited by:

    1. Azizi, Nader & Salhi, Said, 2022. "Reliable hub-and-spoke systems with multiple capacity levels and flow dependent discount factor," European Journal of Operational Research, Elsevier, vol. 298(3), pages 834-854.
    2. Tofighian, Aliasghar & Arshadi khamseh, Alireza, 2021. "A Bi objective uncapacitated multiple allocation p-hub median problem in public administration considering economies of scales," Research in Transportation Economics, Elsevier, vol. 90(C).
    3. Selim Çetiner & Canan Sepil & Haldun Süral, 2010. "Hubbing and routing in postal delivery systems," Annals of Operations Research, Springer, vol. 181(1), pages 109-124, December.
    4. He, Yan & Wu, Tao & Zhang, Canrong & Liang, Zhe, 2015. "An improved MIP heuristic for the intermodal hub location problem," Omega, Elsevier, vol. 57(PB), pages 203-211.
    5. Baumgartner, Kerstin & Fuetterer, André & Thonemann, Ulrich W., 2012. "Supply chain design considering economies of scale and transport frequencies," European Journal of Operational Research, Elsevier, vol. 218(3), pages 789-800.
    6. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    7. Mashor Housh & Ximing Cai, 2015. "Successive smoothing algorithm for solving large-scale optimization models with fixed cost," Annals of Operations Research, Springer, vol. 229(1), pages 475-500, June.
    8. Julia Sender & Thomas Siwczyk & Petra Mutzel & Uwe Clausen, 2017. "Matheuristics for optimizing the network in German wagonload traffic," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 5(3), pages 367-392, September.
    9. Nowak, Maciek & Hewitt, Mike & Bachour, Hussam, 2019. "Mileage bands in freight transportation," European Journal of Operational Research, Elsevier, vol. 272(2), pages 549-564.
    10. Mehmet R. Taner & Bahar Y. Kara, 2016. "Endogenous Effects of Hubbing on Flow Intensities," Networks and Spatial Economics, Springer, vol. 16(4), pages 1151-1181, December.
    11. Hüseyin Güden, 2021. "New complexity results for the p-hub median problem," Annals of Operations Research, Springer, vol. 298(1), pages 229-247, March.
    12. de Sá, Elisangela Martins & de Camargo, Ricardo Saraiva & de Miranda, Gilberto, 2013. "An improved Benders decomposition algorithm for the tree of hubs location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 185-202.
    13. Najy, Waleed & Diabat, Ali, 2020. "Benders decomposition for multiple-allocation hub-and-spoke network design with economies of scale and node congestion," Transportation Research Part B: Methodological, Elsevier, vol. 133(C), pages 62-84.
    14. Neamatian Monemi, Rahimeh & Gelareh, Shahin & Nagih, Anass & Maculan, Nelson & Danach, Kassem, 2021. "Multi-period hub location problem with serial demands: A case study of humanitarian aids distribution in Lebanon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    15. Ricardo Saraiva de Camargo & Gilberto de Miranda & Henrique Pacca L. Luna, 2009. "Benders Decomposition for Hub Location Problems with Economies of Scale," Transportation Science, INFORMS, vol. 43(1), pages 86-97, February.

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