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A hybrid heuristic for the uncapacitated single allocation hub location problem

  • Chen, Jeng-Fung
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    The uncapacitated single allocation hub location problem (USAHLP), with the hub-and-spoke network structure, is a decision problem in regard to the number of hubs and location-allocation. In a pure hub-and-spoke network, all hubs, which act as switching points for internodal flows, are interconnected and none of the non-hubs (i.e., spokes) are directly connected. The key factors for designing a successful hub-and-spoke network are to determine the optimal number of hubs, to properly locate hubs, and to allocate the non-hubs to the hubs. In this paper two approaches to determine the upper bound for the number of hubs along with a hybrid heuristic based on the simulated annealing method, tabu list, and improvement procedures are proposed to resolve the USAHLP. Computational experiences indicate that by applying the derived upper bound for the number of hubs the proposed heuristic is capable of obtaining optimal solutions for all small-scaled problems very efficiently. Computational results also demonstrate that the proposed hybrid heuristic outperforms a genetic algorithm and a simulated annealing method in solving USAHLP.

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    Article provided by Elsevier in its journal Omega.

    Volume (Year): 35 (2007)
    Issue (Month): 2 (April)
    Pages: 211-220

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    Handle: RePEc:eee:jomega:v:35:y:2007:i:2:p:211-220
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    1. 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.
    2. Kuby, Michael J. & Gray, Robert Gordon, 1993. "The hub network design problem with stopovers and feeders: The case of Federal Express," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(1), pages 1-12, January.
    3. 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.
    4. Neil Bania & Paul W. Bauer & Thomas J. Zlatoper, 1992. "U.S. air passenger service: a taxonomy of route networks, hub locations, and competition," Working Paper 9216, Federal Reserve Bank of Cleveland.
    5. 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.
    6. 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).
    7. 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.
    8. 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.
    9. 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.
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