IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v320y2023i2d10.1007_s10479-022-04553-2.html
   My bibliography  Save this article

Multiple allocation hub covering flow problem under uncertainty

Author

Listed:
  • Nazmi Sener

    (Galatasaray University)

  • Orhan Feyzioglu

    (Galatasaray University)

Abstract

The hub covering problem can be viewed as a combination of the set covering and the hub location problem. In a traditional hub covering problem, all parameters are assumed to be deterministic. However, neglecting uncertainties associated with demand and transportation costs may lead to inferior solutions. Thus, we introduce three novel stochastic optimization models to formulate a multiple allocation hub covering problem in which deterministic transportation cost and demand assumptions are relaxed. Further, we also reflect scale economy to the models via inter-hub transportation cost discount factor. The L-Shaped Algorithm is applied to solve the sculpted problems. To test the efficiency of the proposed models, several test instances are generated and solved based on simulated data. The effects of the change of coverage radius, inter-hub discount factor, and hub opening cost are also examined. Results of this study validate that modeling the hub covering problem as a stochastic optimization model yields up 13.05 $$\%$$ % efficiency when compared to the expectation of the expected value method.

Suggested Citation

  • Nazmi Sener & Orhan Feyzioglu, 2023. "Multiple allocation hub covering flow problem under uncertainty," Annals of Operations Research, Springer, vol. 320(2), pages 975-997, January.
    • Handle: RePEc:spr:annopr:v:320:y:2023:i:2:d:10.1007_s10479-022-04553-2
    DOI: 10.1007/s10479-022-04553-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04553-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04553-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. T J Lowe & T Sim, 2013. "The hub covering flow problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 64(7), pages 973-981, July.
    2. 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.
    3. A.T. Ernst & M. Krishnamoorthy, 1999. "Solution algorithms for the capacitated single allocation hub location problem," Annals of Operations Research, Springer, vol. 86(0), pages 141-159, January.
    4. Correia, Isabel & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2018. "A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and inequalities," Omega, Elsevier, vol. 74(C), pages 122-134.
    5. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2012. "Hub location under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(4), pages 529-543.
    6. Nader Azizi & Navneet Vidyarthi & Satyaveer S. Chauhan, 2018. "Modelling and analysis of hub-and-spoke networks under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 264(1), pages 1-40, May.
    7. Ivan Contreras, 2015. "Hub Location Problems," Springer Books, in: Gilbert Laporte & Stefan Nickel & Francisco Saldanha da Gama (ed.), Location Science, edition 127, chapter 0, pages 311-344, Springer.
    8. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    9. Zhongfeng Qin & Yuan Gao, 2017. "Uncapacitated $$p$$ p -hub location problem with fixed costs and uncertain flows," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 705-716, March.
    10. Contreras, Ivan & Cordeau, Jean-François & Laporte, Gilbert, 2011. "Stochastic uncapacitated hub location," European Journal of Operational Research, Elsevier, vol. 212(3), pages 518-528, August.
    11. S Alumur & B Y Kara, 2009. "A hub covering network design problem for cargo applications in Turkey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(10), pages 1349-1359, October.
    12. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    13. 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.
    14. Elisangela Martins de Sá & Ivan Contreras & Jean-François Cordeau & Ricardo Saraiva de Camargo & Gilberto de Miranda, 2015. "The Hub Line Location Problem," Transportation Science, INFORMS, vol. 49(3), pages 500-518, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    2. Domínguez-Bravo, Carmen-Ana & Fernández, Elena & Lüer-Villagra, Armin, 2024. "Hub location with congestion and time-sensitive demand," European Journal of Operational Research, Elsevier, vol. 316(3), pages 828-844.
    3. Taherkhani, Gita & Alumur, Sibel A., 2019. "Profit maximizing hub location problems," Omega, Elsevier, vol. 86(C), pages 1-15.
    4. Juanjo Peiró & Ángel Corberán & Rafael Martí & Francisco Saldanha-da-Gama, 2019. "Heuristic Solutions for a Class of Stochastic Uncapacitated p-Hub Median Problems," Transportation Science, INFORMS, vol. 53(4), pages 1126-1149, July.
    5. 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).
    6. Dhyani, Sneha & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2019. "Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand," IIMA Working Papers WP 2018-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    7. Hu, Qing-Mi & Hu, Shaolong & Wang, Jian & Li, Xiaoping, 2021. "Stochastic single allocation hub location problems with balanced utilization of hub capacities," Transportation Research Part B: Methodological, Elsevier, vol. 153(C), pages 204-227.
    8. Correia, Isabel & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2018. "A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and inequalities," Omega, Elsevier, vol. 74(C), pages 122-134.
    9. Ghaffarinasab, Nader & Çavuş, Özlem & Kara, Bahar Y., 2023. "A mean-CVaR approach to the risk-averse single allocation hub location problem with flow-dependent economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 167(C), pages 32-53.
    10. 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.
    11. Erdoğan, Güneş & Battarra, Maria & Rodríguez-Chía, Antonio M., 2022. "The hub location and pricing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1035-1047.
    12. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2012. "Hub location under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(4), pages 529-543.
    13. Nader Azizi & Navneet Vidyarthi & Satyaveer S. Chauhan, 2018. "Modelling and analysis of hub-and-spoke networks under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 264(1), pages 1-40, May.
    14. Soylu, Banu & Katip, Hatice, 2019. "A multiobjective hub-airport location problem for an airline network design," European Journal of Operational Research, Elsevier, vol. 277(2), pages 412-425.
    15. Nader Ghaffarinasab & Bahar Y. Kara, 2019. "Benders Decomposition Algorithms for Two Variants of the Single Allocation Hub Location Problem," Networks and Spatial Economics, Springer, vol. 19(1), pages 83-108, March.
    16. Milad Keshvari Fard & Laurent Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," Working Papers hal-01821280, HAL.
    17. Nader Azizi, 2019. "Managing facility disruption in hub-and-spoke networks: formulations and efficient solution methods," Annals of Operations Research, Springer, vol. 272(1), pages 159-185, January.
    18. Milad , Keshvari Fard & Laurent, Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," ESSEC Working Papers WP1805, ESSEC Research Center, ESSEC Business School.
    19. Ghaffarinasab, Nader & Atayi, Reza, 2018. "An implicit enumeration algorithm for the hub interdiction median problem with fortification," European Journal of Operational Research, Elsevier, vol. 267(1), pages 23-39.
    20. Farid Momayezi & S. Kamal Chaharsooghi & Mohammad Mehdi Sepehri & Ali Husseinzadeh Kashan, 2021. "The capacitated modular single-allocation hub location problem with possibilities of hubs disruptions: modeling and a solution algorithm," Operational Research, Springer, vol. 21(1), pages 139-166, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:320:y:2023:i:2:d:10.1007_s10479-022-04553-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.