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Robust uncapacitated hub location

Author

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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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    References listed on IDEAS

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