IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v73y2018icp95-112.html
   My bibliography  Save this article

The gateway hub location problem

Author

Listed:
  • Bernardes Real, Luiza
  • O'Kelly, Morton
  • de Miranda, Gilberto
  • Saraiva de Camargo, Ricardo

Abstract

We introduce the Gateway Hub Location Problem (GHLP) to design global air transportation systems. Relying on a three-level hub network structure and on having nodes located in different geographic regions, the GHLP consists of locating international gateways and domestic hubs, activating arcs to induce a connected gateway and hub network, and routing flows within the network at minimum cost. Most previous studies focus on a typical hub-and-spoke network, in which local and global flows are not differentiated. Here to better represent a world wide air transportation system, global flows can only leave or enter a given geographic region by means of a gateway, while local flows can only use hubs within their respective region. As routing local or global flows involved different agents, this study presents a mixed integer programming formulation that exploits these differences to model both the local and global flows. Due to the formulation's characteristics, two algorithm variants based on Benders decomposition method are devised to solve the problem. A new repair procedure produces optimality Benders cuts whenever feasibility Benders cuts would rather be expected. While the monolithic version failed to solve medium size instances, our algorithms solved lager ones in reasonable time.

Suggested Citation

  • Bernardes Real, Luiza & O'Kelly, Morton & de Miranda, Gilberto & Saraiva de Camargo, Ricardo, 2018. "The gateway hub location problem," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 95-112.
    • Handle: RePEc:eee:jaitra:v:73:y:2018:i:c:p:95-112
    DOI: 10.1016/j.jairtraman.2018.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699717304647
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2018.08.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Schosser, Maximilian & Wittmer, Andreas, 2015. "Cost and revenue synergies in airline mergers – Examining geographical differences," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 142-153.
    2. Gelareh, Shahin & Neamatian Monemi, Rahimeh & Nickel, Stefan, 2015. "Multi-period hub location problems in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 67-94.
    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. Hsu, Chaug-Ing & Wen, Yuh-Horng, 2003. "Determining flight frequencies on an airline network with demand-supply interactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(6), pages 417-441, November.
    5. Hong, Sungwook & Harker, Patrick T., 1992. "Air traffic network equilibrium: Toward frequency, price and slot priority analysis," Transportation Research Part B: Methodological, Elsevier, vol. 26(4), pages 307-323, August.
    6. T. L. Magnanti & R. T. Wong, 1981. "Accelerating Benders Decomposition: Algorithmic Enhancement and Model Selection Criteria," Operations Research, INFORMS, vol. 29(3), pages 464-484, June.
    7. Gelareh, Shahin & Nickel, Stefan, 2011. "Hub location problems in transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1092-1111.
    8. Mao, Liang & Wu, Xiao & Huang, Zhuojie & Tatem, Andrew J., 2015. "Modeling monthly flows of global air travel passengers: An open-access data resource," Journal of Transport Geography, Elsevier, vol. 48(C), pages 52-60.
    9. Nicole Adler, 2005. "Hub-Spoke Network Choice Under Competition with an Application to Western Europe," Transportation Science, INFORMS, vol. 39(1), pages 58-72, February.
    10. Jean-François Cordeau & François Soumis & Jacques Desrosiers, 2000. "A Benders Decomposition Approach for the Locomotive and Car Assignment Problem," Transportation Science, INFORMS, vol. 34(2), pages 133-149, May.
    11. Ivan Contreras & Jean-François Cordeau & Gilbert Laporte, 2011. "Benders Decomposition for Large-Scale Uncapacitated Hub Location," Operations Research, INFORMS, vol. 59(6), pages 1477-1490, December.
    12. Birge, John R. & Louveaux, Francois V., 1988. "A multicut algorithm for two-stage stochastic linear programs," European Journal of Operational Research, Elsevier, vol. 34(3), pages 384-392, March.
    13. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    14. A. M. Geoffrion & G. W. Graves, 1974. "Multicommodity Distribution System Design by Benders Decomposition," Management Science, INFORMS, vol. 20(5), pages 822-844, January.
    15. Janny M. Y. Leung & Thomas L. Magnanti & Vijay Singhal, 1990. "Routing in Point-to-Point Delivery Systems: Formulations and Solution Heuristics," Transportation Science, INFORMS, vol. 24(4), pages 245-260, November.
    16. Hansen, Mark, 1990. "Airline competition in a hub-dominated environment: An application of noncooperative game theory," Transportation Research Part B: Methodological, Elsevier, vol. 24(1), pages 27-43, February.
    17. Adler, Nicole & Smilowitz, Karen, 2007. "Hub-and-spoke network alliances and mergers: Price-location competition in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 394-409, May.
    18. 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.
    19. Yaman, Hande, 2009. "The hierarchical hub median problem with single assignment," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 643-658, July.
    20. Cynthia Barnhart & Peter Belobaba & Amedeo R. Odoni, 2003. "Applications of Operations Research in the Air Transport Industry," Transportation Science, INFORMS, vol. 37(4), pages 368-391, November.
    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. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    2. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elisangela Martins de Sá & Ivan Contreras & Jean-François Cordeau & Ricardo Saraiva de Camargo & Gilberto de Miranda, 2015. "The Hub Line Location Problem," Transportation Science, INFORMS, vol. 49(3), pages 500-518, August.
    2. Ghaffarinasab, Nader & Kara, Bahar Y. & Campbell, James F., 2022. "The stratified p-hub center and p-hub maximal covering problems," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 120-148.
    3. Roni, Md.S. & Eksioglu, Sandra D. & Searcy, Erin & Jha, Krishna, 2014. "A supply chain network design model for biomass co-firing in coal-fired power plants," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 115-134.
    4. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Fu, Xiaowen, 2010. "Optimal route allocation in a liberalizing airline market," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 886-902, August.
    5. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    6. 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).
    7. Ghaffarinasab, Nader & Çavuş, Özlem & Kara, Bahar Y., 2023. "A mean-CVaR approach to the risk-averse single allocation hub location problem with flow-dependent economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 167(C), pages 32-53.
    8. Ivan Contreras & Jean-François Cordeau & Gilbert Laporte, 2011. "Benders Decomposition for Large-Scale Uncapacitated Hub Location," Operations Research, INFORMS, vol. 59(6), pages 1477-1490, December.
    9. Hu, Lu & Zhu, Juan Xiu & Wang, Yuan & Lee, Loo Hay, 2018. "Joint design of fleet size, hub locations, and hub capacities for third-party logistics networks with road congestion constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 568-588.
    10. Nader Ghaffarinasab & Bahar Y. Kara, 2019. "Benders Decomposition Algorithms for Two Variants of the Single Allocation Hub Location Problem," Networks and Spatial Economics, Springer, vol. 19(1), pages 83-108, March.
    11. Arthur Mahéo & Philip Kilby & Pascal Van Hentenryck, 2019. "Benders Decomposition for the Design of a Hub and Shuttle Public Transit System," Service Science, INFORMS, vol. 53(1), pages 77-88, February.
    12. Esmizadeh, Yalda & Bashiri, Mahdi & Jahani, Hamed & Almada-Lobo, Bernardo, 2021. "Cold chain management in hierarchical operational hub networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    13. Tu, Ningwen & Li, Zhi-Chun & Fu, Xiaowen & Lei, Zheng, 2020. "Airline network competition in inter-continental market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    14. Gelareh, Shahin & Neamatian Monemi, Rahimeh & Nickel, Stefan, 2015. "Multi-period hub location problems in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 67-94.
    15. 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.
    16. Milad Keshvari Fard & Laurent Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," Working Papers hal-01821280, HAL.
    17. Ghaffarinasab, Nader & Kara, Bahar Y., 2022. "A conditional β-mean approach to risk-averse stochastic multiple allocation hub location problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    18. Sheng, Dian & Li, Zhi-Chun & Xiao, Yi-bin & Fu, Xiaowen, 2015. "Slot auction in an airport network with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 79-100.
    19. Milad , Keshvari Fard & Laurent, Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," ESSEC Working Papers WP1805, ESSEC Research Center, ESSEC Business School.
    20. Camilo Ortiz-Astorquiza & Ivan Contreras & Gilbert Laporte, 2019. "An Exact Algorithm for Multilevel Uncapacitated Facility Location," Transportation Science, INFORMS, vol. 53(4), pages 1085-1106, July.

    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:jaitra:v:73:y:2018:i:c:p:95-112. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.