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Location of hubs in a competitive environment

  • Marianov, Vladimir
  • Serra, Daniel
  • ReVelle, Charles

We offer a formulation that locates hubs on a network in a competitive environment; that is, customer capture is sought, which happens whenever the location of a new hub results in a reduction of the current cost (time, distance) needed by the traffic that goes from the specified origin to the specified destination. The formulation presented here reduces the number of variables and constraints as compared to existing covering models. This model is suited for both air passenger and cargo transportation. In this model, each origin-destination flow can go through either one or two hubs, and each demand point can be assigned to more than a hub, depending on the different destinations of its traffic. Links (``spokes'' have no capacity limit. Computational experience is provided.

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Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 114 (1999)
Issue (Month): 2 (April)
Pages: 363-371

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Handle: RePEc:eee:ejores:v:114:y:1999:i:2:p:363-371
Contact details of provider: Web page: http://www.elsevier.com/locate/eor

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  1. P J Densham & G Rushton, 1992. "Strategies for solving large location-allocation problems by heuristic methods," Environment and Planning A, Pion Ltd, London, vol. 24(2), pages 289-304, February.
  2. Skorin-Kapov, Darko & Skorin-Kapov, Jadranka & O'Kelly, Morton, 1996. "Tight linear programming relaxations of uncapacitated p-hub median problems," European Journal of Operational Research, Elsevier, vol. 94(3), pages 582-593, November.
  3. O'kelly, Morton E., 1987. "A quadratic integer program for the location of interacting hub facilities," European Journal of Operational Research, Elsevier, vol. 32(3), pages 393-404, December.
  4. Campbell, James F., 1993. "Continuous and discrete demand hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 27(6), pages 473-482, December.
  5. Klincewicz, J. G., 1991. "Heuristics for the p-hub location problem," European Journal of Operational Research, Elsevier, vol. 53(1), pages 25-37, July.
  6. Aykin, Turgut, 1995. "The hub location and routing problem," European Journal of Operational Research, Elsevier, vol. 83(1), pages 200-219, May.
  7. 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.
  8. 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.
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