IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v211y2011i3p442-451.html
   My bibliography  Save this article

Allocation strategies in hub networks

Author

Listed:
  • Yaman, Hande

Abstract

In this paper, we study allocation strategies and their effects on total routing costs in hub networks. Given a set of nodes with pairwise traffic demands, the p-hub median problem is the problem of choosing p nodes as hub locations and routing traffic through these hubs at minimum cost. This problem has two versions; in single allocation problems, each node can send and receive traffic through a single hub, whereas in multiple allocation problems, there is no such restriction and a node may send and receive its traffic through all p hubs. This results in high fixed costs and complicated networks. In this study, we introduce the r-allocation p-hub median problem, where each node can be connected to at most r hubs. This new problem generalizes the two versions of the p-hub median problem. We derive mixed-integer programming formulations for this problem and perform a computational study using well-known datasets. For these datasets, we conclude that single allocation solutions are considerably more expensive than multiple allocation solutions, but significant savings can be achieved by allowing nodes to be allocated to two or three hubs rather than one. We also present models for variations of this problem with service quality considerations, flow thresholds, and non-stop service.

Suggested Citation

  • Yaman, Hande, 2011. "Allocation strategies in hub networks," European Journal of Operational Research, Elsevier, vol. 211(3), pages 442-451, June.
  • Handle: RePEc:eee:ejores:v:211:y:2011:i:3:p:442-451
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(11)00017-8
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Ebery, Jamie, 2001. "Solving large single allocation p-hub problems with two or three hubs," European Journal of Operational Research, Elsevier, vol. 128(2), pages 447-458, January.
    3. Alumur, Sibel A. & Kara, Bahar Y. & Karasan, Oya E., 2009. "The design of single allocation incomplete hub networks," Transportation Research Part B: Methodological, Elsevier, vol. 43(10), pages 936-951, December.
    4. Aykin, Turgut, 1994. "Lagrangian relaxation based approaches to capacitated hub-and-spoke network design problem," European Journal of Operational Research, Elsevier, vol. 79(3), pages 501-523, December.
    5. Podnar, Hrvoje & Skorin-Kapov, Jadranka & Skorin-Kapov, Darko, 2002. "Network cost minimization using threshold-based discounting," European Journal of Operational Research, Elsevier, vol. 137(2), pages 371-386, March.
    6. Wagner, Bernd, 2004. "A note on "The latest arrival hub location problem"," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 22649, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Cunha, Claudio B. & Silva, Marcos Roberto, 2007. "A genetic algorithm for the problem of configuring a hub-and-spoke network for a LTL trucking company in Brazil," European Journal of Operational Research, Elsevier, vol. 179(3), pages 747-758, June.
    8. Sue Abdinnour-Helm & M.A. Venkataramanan, 1998. "Solution approaches to hub location problems," Annals of Operations Research, Springer, vol. 78(0), pages 31-50, January.
    9. Morton O'Kelly & Darko Skorin-Kapov & Jadranka Skorin-Kapov, 1995. "Lower Bounds for the Hub Location Problem," Management Science, INFORMS, vol. 41(4), pages 713-721, April.
    10. Ernst, Andreas T. & Krishnamoorthy, Mohan, 1998. "Exact and heuristic algorithms for the uncapacitated multiple allocation p-hub median problem," European Journal of Operational Research, Elsevier, vol. 104(1), pages 100-112, January.
    11. 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.
    12. Canovas, Lazaro & Garcia, Sergio & Marin, Alfredo, 2007. "Solving the uncapacitated multiple allocation hub location problem by means of a dual-ascent technique," European Journal of Operational Research, Elsevier, vol. 179(3), pages 990-1007, June.
    13. Ilic, Aleksandar & Urosevic, Dragan & Brimberg, Jack & Mladenovic, Nenad, 2010. "A general variable neighborhood search for solving the uncapacitated single allocation p-hub median problem," European Journal of Operational Research, Elsevier, vol. 206(2), pages 289-300, October.
    14. 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.
    15. J. F. Campbell & A. T. Ernst & M. Krishnamoorthy, 2005. "Hub Arc Location Problems: Part II---Formulations and Optimal Algorithms," Management Science, INFORMS, vol. 51(10), pages 1556-1571, October.
    16. Wagner, Bernd, 2004. "A note on "the latest arrival hub location problem"," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 20660, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Mayer, Gabriela & Wagner, Bernd, 2002. "HUBLocator : an exact solution method for the multiple allocation hub location problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 18962, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    18. Bernd Wagner, 2004. "A Note on "The Latest Arrival Hub Location Problem"," Management Science, INFORMS, vol. 50(12), pages 1751-1752, December.
    19. Kara, Bahar Y. & Tansel, Barbaros C., 2000. "On the single-assignment p-hub center problem," European Journal of Operational Research, Elsevier, vol. 125(3), pages 648-655, September.
    20. Yaman, Hande, 2009. "The hierarchical hub median problem with single assignment," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 643-658, July.
    21. Bahar Y. Kara & Barbaros Ç. Tansel, 2001. "The Latest Arrival Hub Location Problem," Management Science, INFORMS, vol. 47(10), pages 1408-1420, October.
    22. Hasan Pirkul & David A. Schilling, 1998. "An Efficient Procedure for Designing Single Allocation Hub and Spoke Systems," Management Science, INFORMS, vol. 44(12-Part-2), pages 235-242, December.
    23. Yaman, Hande & Kara, Bahar Y. & Tansel, Barbaros Ç., 2007. "The latest arrival hub location problem for cargo delivery systems with stopovers," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 906-919, October.
    24. Sung, C. S. & Jin, H. W., 2001. "Dual-based approach for a hub network design problem under non-restrictive policy," European Journal of Operational Research, Elsevier, vol. 132(1), pages 88-105, July.
    25. Wagner, Bernd, 2007. "An exact solution procedure for a Cluster Hub Location Problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 39352, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    26. Kratica, Jozef & Stanimirovic, Zorica & Tosic, Dusan & Filipovic, Vladimir, 2007. "Two genetic algorithms for solving the uncapacitated single allocation p-hub median problem," European Journal of Operational Research, Elsevier, vol. 182(1), pages 15-28, October.
    27. J. F. Campbell & A. T. Ernst & M. Krishnamoorthy, 2005. "Hub Arc Location Problems: Part I---Introduction and Results," Management Science, INFORMS, vol. 51(10), pages 1540-1555, October.
    28. Boland, Natashia & Krishnamoorthy, Mohan & Ernst, Andreas T. & Ebery, Jamie, 2004. "Preprocessing and cutting for multiple allocation hub location problems," European Journal of Operational Research, Elsevier, vol. 155(3), pages 638-653, June.
    29. Sohn, Jinhyeon & Park, Sungsoo, 1997. "A linear program for the two-hub location problem," European Journal of Operational Research, Elsevier, vol. 100(3), pages 617-622, August.
    30. Chen, Jeng-Fung, 2007. "A hybrid heuristic for the uncapacitated single allocation hub location problem," Omega, Elsevier, vol. 35(2), pages 211-220, April.
    31. Sohn, Jinhyeon & Park, Sungsoo, 1998. "Efficient solution procedure and reduced size formulations for p-hub location problems," European Journal of Operational Research, Elsevier, vol. 108(1), pages 118-126, July.
    32. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    33. Abdinnour-Helm, Sue, 1998. "A hybrid heuristic for the uncapacitated hub location problem," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 489-499, April.
    34. Wagner, Bernd, 2007. "An exact solution procedure for a cluster hub location problem," European Journal of Operational Research, Elsevier, vol. 178(2), pages 391-401, April.
    35. Mari'n, Alfredo & Canovas, Lazaro & Landete, Mercedes, 2006. "New formulations for the uncapacitated multiple allocation hub location problem," European Journal of Operational Research, Elsevier, vol. 172(1), pages 274-292, July.
    36. Klincewicz, J. G., 1991. "Heuristics for the p-hub location problem," European Journal of Operational Research, Elsevier, vol. 53(1), pages 25-37, July.
    37. Contreras, Ivan & Fernández, Elena & Marín, Alfredo, 2010. "The Tree of Hubs Location Problem," European Journal of Operational Research, Elsevier, vol. 202(2), pages 390-400, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Aros-Vera, Felipe & Marianov, Vladimir & Mitchell, John E., 2013. "p-Hub approach for the optimal park-and-ride facility location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 277-285.
    2. F. Parvaresh & S. Hashemi Golpayegany & S. Moattar Husseini & B. Karimi, 2013. "Solving the p-hub Median Problem Under Intentional Disruptions Using Simulated Annealing," Networks and Spatial Economics, Springer, vol. 13(4), pages 445-470, December.
    3. Alumur, Sibel A. & Yaman, Hande & Kara, Bahar Y., 2012. "Hierarchical multimodal hub location problem with time-definite deliveries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1107-1120.
    4. 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.
    5. Meuffels, W.J.M., 2015. "The design of road and air networks for express service providers," Other publications TiSEM d3266cb8-bc55-41be-adc7-4, Tilburg University, School of Economics and Management.
    6. repec:eee:transe:v:103:y:2017:i:c:p:158-173 is not listed on IDEAS
    7. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:211:y:2011:i:3:p:442-451. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eor .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.