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Robust uncapacitated hub location

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  • Zetina, Carlos Armando
  • Contreras, Ivan
  • Cordeau, Jean-François
  • Nikbakhsh, Ehsan

Abstract

In this paper we present robust counterparts for uncapacitated hub location problems in which the level of conservatism can be controlled by means of a budget of uncertainty. We study three particular cases for which the parameters are subject to interval uncertainty: demand, transportation cost, and both simultaneously. We present mixed integer programming formulations for each of these cases and a branch-and-cut algorithm to solve the latter. We present computational results to evaluate the performance of the proposed formulations when solved with a general purpose solver and study the structure of the solutions to each of the robust counterparts. We also compare the performance between solutions obtained from a commensurable stochastic model and those from our robust counterparts in both risk neutral and worst-case settings.

Suggested Citation

  • Zetina, Carlos Armando & Contreras, Ivan & Cordeau, Jean-François & Nikbakhsh, Ehsan, 2017. "Robust uncapacitated hub location," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 393-410.
    • Handle: RePEc:eee:transb:v:106:y:2017:i:c:p:393-410
    DOI: 10.1016/j.trb.2017.06.008
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    13. 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).
    14. Zhang, Haifeng & Yang, Kai & Gao, Yuan & Yang, Lixing, 2022. "Accelerating Benders decomposition for stochastic incomplete multimodal hub location problem in many-to-many transportation and distribution systems," International Journal of Production Economics, Elsevier, vol. 248(C).
    15. Tianqi Liu & Francisco Saldanha-da-Gama & Shuming Wang & Yuchen Mao, 2022. "Robust Stochastic Facility Location: Sensitivity Analysis and Exact Solution," INFORMS Journal on Computing, INFORMS, vol. 34(5), pages 2776-2803, September.
    16. Cheng, Chun & Adulyasak, Yossiri & Rousseau, Louis-Martin, 2021. "Robust facility location under demand uncertainty and facility disruptions," Omega, Elsevier, vol. 103(C).
    17. Corberán, Ángel & Landete, Mercedes & Peiró, Juanjo & Saldanha-da-Gama, Francisco, 2019. "Improved polyhedral descriptions and exact procedures for a broad class of uncapacitated p-hub median problems," Transportation Research Part B: Methodological, Elsevier, vol. 123(C), pages 38-63.
    18. Rahmati, Reza & Neghabi, Hossein & Bashiri, Mahdi & Salari, Majid, 2023. "Stochastic regional-based profit-maximizing hub location problem: A sustainable overview," Omega, Elsevier, vol. 121(C).
    19. Martina Jakara & Nikolina Brnjac, 2023. "Foliated Transport Networks in Intermodal Freight Transport," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    20. Hao Shen & Yong Liang & Zuo-Jun Max Shen, 2021. "Reliable Hub Location Model for Air Transportation Networks Under Random Disruptions," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 388-406, March.
    21. Rostami, Borzou & Kämmerling, Nicolas & Naoum-Sawaya, Joe & Buchheim, Christoph & Clausen, Uwe, 2021. "Stochastic single-allocation hub location," European Journal of Operational Research, Elsevier, vol. 289(3), pages 1087-1106.
    22. Najy, Waleed & Diabat, Ali, 2020. "Benders decomposition for multiple-allocation hub-and-spoke network design with economies of scale and node congestion," Transportation Research Part B: Methodological, Elsevier, vol. 133(C), pages 62-84.
    23. Marc Janschekowitz & Gita Taherkhani & Sibel A. Alumur & Stefan Nickel, 2023. "An alternative approach to address uncertainty in hub location," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(2), pages 359-393, June.

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