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Stochastic uncapacitated hub location

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  • Contreras, Ivan
  • Cordeau, Jean-François
  • Laporte, Gilbert

Abstract

We study stochastic uncapacitated hub location problems in which uncertainty is associated to demands and transportation costs. We show that the stochastic problems with uncertain demands or dependent transportation costs are equivalent to their associated deterministic expected value problem (EVP), in which random variables are replaced by their expectations. In the case of uncertain independent transportation costs, the corresponding stochastic problem is not equivalent to its EVP and specific solution methods need to be developed. We describe a Monte-Carlo simulation-based algorithm that integrates a sample average approximation scheme with a Benders decomposition algorithm to solve problems having stochastic independent transportation costs. Numerical results on a set of instances with up to 50 nodes are reported.

Suggested Citation

  • Contreras, Ivan & Cordeau, Jean-François & Laporte, Gilbert, 2011. "Stochastic uncapacitated hub location," European Journal of Operational Research, Elsevier, vol. 212(3), pages 518-528, August.
  • Handle: RePEc:eee:ejores:v:212:y:2011:i:3:p:518-528
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:transe:v:109:y:2018:i:c:p:20-43 is not listed on IDEAS
    2. Marufuzzaman, Mohammad & Eksioglu, Sandra D. & Li, Xiaopeng & Wang, Jin, 2014. "Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 122-145.
    3. Contreras, Ivan & Fernández, Elena, 2012. "General network design: A unified view of combined location and network design problems," European Journal of Operational Research, Elsevier, vol. 219(3), pages 680-697.
    4. repec:eee:jomega:v:74:y:2018:i:c:p:122-134 is not listed on IDEAS
    5. Mohammadi, M. & Torabi, S.A. & Tavakkoli-Moghaddam, R., 2014. "Sustainable hub location under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 62(C), pages 89-115.
    6. repec:eee:transb:v:106:y:2017:i:c:p:393-410 is not listed on IDEAS
    7. An, Yu & Zhang, Yu & Zeng, Bo, 2015. "The reliable hub-and-spoke design problem: Models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 103-122.
    8. repec:pal:jorsoc:v:68:y:2017:i:10:d:10.1057_s41274-016-0155-6 is not listed on IDEAS
    9. Ramamoorthy, Prasanna & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2016. "Hub Interdiction & Hub Protection problems: Model formulations & Exact Solution methods. (Revised)," IIMA Working Papers WP2016-10-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. 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.
    11. Adibi, Ali & Razmi, Jafar, 2015. "2-Stage stochastic programming approach for hub location problem under uncertainty: A case study of air network of Iran," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 172-178.
    12. Yang, Kai & Yang, Lixing & Gao, Ziyou, 2016. "Planning and optimization of intermodal hub-and-spoke network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 248-266.
    13. Zhongfeng Qin & Yuan Gao, 2017. "Uncapacitated $$p$$ p -hub location problem with fixed costs and uncertain flows," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 705-716, March.
    14. repec:spr:annopr:v:264:y:2018:i:1:d:10.1007_s10479-017-2730-x is not listed on IDEAS
    15. Shahabi, Mehrdad & Unnikrishnan, Avinash, 2014. "Robust hub network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 356-373.
    16. Mohammadi, Mehrdad & Jula, Payman & Tavakkoli-Moghaddam, Reza, 2017. "Design of a reliable multi-modal multi-commodity model for hazardous materials transportation under uncertainty," European Journal of Operational Research, Elsevier, vol. 257(3), pages 792-809.
    17. 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.

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