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Continuous and discrete demand hub location problems

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  • Campbell, James F.

Abstract

Hub and spoke designs have been adopted by many air carriers and motor carriers in recent years. This paper compares rectilinear distance transportation costs for hub networks with two types of demand to investigate how well an idealized model predicts the cost for real-world demand. The idealized model approximates the transportation cost for a hub network serving a continuous uniform distribution of demand in a square service region with equal origin-destination flows. The cost for the approximation formula is compared to the optimal cost for discrete demand hub location problems. The ability of the approximation formula to predict the optimal transportation cost is measured, and the quality of the prediction is related to characteristics of the discrete demand.

Suggested Citation

  • Campbell, James F., 1993. "Continuous and discrete demand hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 27(6), pages 473-482, December.
  • Handle: RePEc:eee:transb:v:27:y:1993:i:6:p:473-482
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    References listed on IDEAS

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    1. S. Selvanathan, 1987. "Do OECD Consumers Obey Demand Theory?," Economics Discussion / Working Papers 87-04, The University of Western Australia, Department of Economics.
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    Cited by:

    1. Marianov, Vladimir & Serra, Daniel & ReVelle, Charles, 1999. "Location of hubs in a competitive environment," European Journal of Operational Research, Elsevier, vol. 114(2), pages 363-371, April.
    2. Li, Xiaopeng & Ma, Jiaqi & Cui, Jianxun & Ghiasi, Amir & Zhou, Fang, 2016. "Design framework of large-scale one-way electric vehicle sharing systems: A continuum approximation model," Transportation Research Part B: Methodological, Elsevier, vol. 88(C), pages 21-45.
    3. Yıldız, Barış & Karaşan, Oya Ekin, 2015. "Regenerator Location Problem and survivable extensions: A hub covering location perspective," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 32-55.
    4. Li, Xiaopeng & Ouyang, Yanfeng, 2010. "A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 535-548, May.
    5. Bouchery, Yann & Fransoo, Jan, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," International Journal of Production Economics, Elsevier, vol. 164(C), pages 388-399.
    6. Tsao, Yu-Chung & Mangotra, Divya & Lu, Jye-Chyi & Dong, Ming, 2012. "A continuous approximation approach for the integrated facility-inventory allocation problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 216-228.
    7. Cui, Tingting & Ouyang, Yanfeng & Shen, Zuo-Jun Max J, 2010. "Reliable Facility Location Design under the Risk of Disruptions," University of California Transportation Center, Working Papers qt5sh2c7pw, University of California Transportation Center.
    8. Campbell, James F., 2013. "A continuous approximation model for time definite many-to-many transportation," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 100-112.

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