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Location of hubs in a competitive environment

We offer a formulation that locates hubs on a network in a competitive environment; that is, customer capture is sought, which happens whenever the location of a new hub results in a reduction of the current cost (time, distance) needed by the traffic that goes from the specified origin to the specified destination. The formulation presented here reduces the number of variables and constraints as compared to existing covering models. This model is suited for both air passenger and cargo transportation. In this model, each origin-destination flow can go through either one or two hubs, and each demand point can be assigned to more than a hub, depending on the different destinations of its traffic. Links (``spokes'' have no capacity limit. Computational experience is provided.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/227.pdf
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 227.

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Date of creation: Jun 1997
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Handle: RePEc:upf:upfgen:227
Contact details of provider: Web page: http://www.econ.upf.edu/

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  1. Campbell, James F., 1993. "Continuous and discrete demand hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 27(6), pages 473-482, December.
  2. P J Densham & G Rushton, 1992. "Strategies for solving large location-allocation problems by heuristic methods," Environment and Planning A, Pion Ltd, London, vol. 24(2), pages 289-304, February.
  3. Skorin-Kapov, Darko & Skorin-Kapov, Jadranka & O'Kelly, Morton, 1996. "Tight linear programming relaxations of uncapacitated p-hub median problems," European Journal of Operational Research, Elsevier, vol. 94(3), pages 582-593, November.
  4. Skorin-Kapov, Darko & Skorin-Kapov, Jadranka, 1994. "On tabu search for the location of interacting hub facilities," European Journal of Operational Research, Elsevier, vol. 73(3), pages 502-509, March.
  5. Klincewicz, J. G., 1991. "Heuristics for the p-hub location problem," European Journal of Operational Research, Elsevier, vol. 53(1), pages 25-37, July.
  6. 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.
  7. Aykin, Turgut, 1995. "The hub location and routing problem," European Journal of Operational Research, Elsevier, vol. 83(1), pages 200-219, May.
  8. O'kelly, Morton E., 1987. "A quadratic integer program for the location of interacting hub facilities," European Journal of Operational Research, Elsevier, vol. 32(3), pages 393-404, December.
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