Designing hub-based regional transportation networks with service level constraints

This paper investigates the suitability of hub-based structures for coping with so-called regional transportation networks, i.e., transportation structures able to connect any two nodes in the network respecting a tight service level requirement. While hub-and-spoke structures have been extensively studied in the literature, they were typically approached as strategic problems with minimal focus on incorporating service-related constraints. This contrasts with current trends in regional transportation that request greater flexibility and stricter service schedules. We analyze how the requirement of time-definite constraints impacts three different hub-based network topologies, including a new structure proposing a double-path route to connect the inter-hubs traffic. To this end, we extend previous formulations to cope with the mentioned time-definite constraints, and we propose a new set-packing formulation for the one that connects the hubs by a double-path route. Numerical experiments based on realistic instances inspired by Quebec’s Integrated Centers of Healthcare and Social Services (CISSS) allowed us to evaluate the performance of the proposed configurations, demonstrating the critical importance of selecting the appropriate hub network structure to meet targeted service levels. We provide valuable insights for managers aiming to redesign their regional transportation networks with an emphasis on service level and synchronization.