Network hub locations problems: the state of the art

Cataloged from PDF version of article.Hubs are special facilities that serve as switching, transshipment and sorting points in many-to-many distribution systems. The hub location problem is concerned with locating hub facilities and allocating demand nodes to hubs in order to route the traffic between origin-destination pairs. In this paper we classify and survey network hub location models. We also include some recent trends on hub location and provide a synthesis of the literature. (C) 2007 Elsevier B.V. All rights reserved

Formulation and solution of a two-stage capacitated facility location problem with multilevel capacities

In this paper, the multi-product facility location problem in a two-stage supply chain is investigated. In this problem, the locations of depots (distribution centres) need to be determined along with their corresponding capacities. Moreover, the product flows from the plants to depots and onto customers must also be optimised. Here, plants have a production limit whereas potential depots have several possible capacity levels to choose from, which are defined as multilevel capacities. Plants must serve customer demands via depots. Two integer linear programming (ILP) models are introduced to solve the problem in order to minimise the fixed costs of opening depots and transportation costs. In the first model, the depot capacity is based on the maximum number of each product that can be stored whereas in the second one, the capacity is determined by the size (volume) of the depot. For large problems, the models are very difficult to solve using an exact method. Therefore, a matheuristic approach based on an aggregation approach and an exact method (ILP) is proposed in order to solve such problems. The methods are assessed using randomly generated data sets and existing data sets taken from the literature. The solutions obtained from the computational study confirm the effectiveness of the proposed matheuristic approach which outperforms the exact method. In addition, a case study arising from the wind energy sector in the UK is presented

Hub Network Design and Discrete Location: Economies of Scale, Reliability and Service Level Considerations

In this thesis, we study three related decision problems in location theory. The first part of the dissertation presents solution algorithms for the cycle hub location problem (CHLP), which seeks to locate p-hub facilities that are connected by means of a cycle, and to assign non-hub nodes to hubs so as to minimize the total cost of routing flows through the network. This problem is useful in modeling applications in transportation and telecommunications systems, where large setup costs on the links and reliability requirements make cycle topologies a prominent network architecture. We present a branch and-cut algorithm that uses a flow-based formulation and two families of mixed-dicut inequalities as a lower bounding procedure at nodes of the enumeration tree. We also introduce a greedy randomized adaptive search algorithm that is used to obtain initial upper bounds for the exact algorithm and to obtain feasible solutions for large-scale instances of the CHLP. Numerical results on a set of benchmark instances with up to 100 nodes confirm the efficiency of the proposed solution algorithms. In the second part of this dissertation, we study the modular hub location problem, which explicitly models the flow-dependent transportation costs using modular arc costs. It neither assumes a full interconnection between hub nodes nor a particular topological structure, instead it considers link activation decisions as part of the design. We propose a branch-and-bound algorithm that uses a Lagrangean relaxation to obtain lower and upper bounds at the nodes of the enumeration tree. Numerical results are reported for benchmark instances with up to 75 nodes. In the last part of this dissertation we study the dynamic facility location problem with service level constraints (DFLPSL). The DFLPSL seeks to locate a set of facilities with sufficient capacities over a planning horizon to serve customers at minimum cost while a service level requirement is met. This problem captures two important sources of stochasticity in facility location by considering known probability distribution functions associated with processing and routing times. We present a nonlinear mixed integer programming formulation and provide feasible solutions using two heuristic approaches. We present the results of computational experiments to analyze the impact and potential benefits of explicitly considering service level constraints when designing distribution systems

A Lagrangean Relaxation Approach for the Modular Hub Location Problem

Hub location problems deal with the location of hub facilities and the allocation of the demand nodes to hub facilities so as to effectively route the demand between origin–destination pairs. Transportation systems such as mail, freight, passenger and even telecommunication systems most often employ hub and spoke networks to provide a strong balance between high service quality and low costs resulting in an economically competitive operation. In this study the Modular Hub Location Problem (Multiple assignments without direct connections) (MHLP-MA) is introduced. A Lagrangean relaxation method is used to approximately solve large scale instances. It relaxes a set of complicating constraints to efficiently obtain lower and upper bounds on the optimal solution of the problem. Computational experiments are performed in order to evaluate the effectiveness and limitations of the proposed model and solution method

A Simulated Annealing Algorithm within the Variable Neighbourhood Search Framework to Solve the Capacitated Facility Location-Allocation Problem

In this study, we discuss the capacitated facility location-allocation problem with uncertain parameters in which the uncertainty is characterized by given finite numbers of scenarios. In this model, the objective function minimizes the total expected costs of transportation and opening facilities subject to the robustness constraint. To tackle the problem efficiently and effectively, an efficient hybrid solution algorithm based on several meta-heuristics and an exact algorithm is put forward. This algorithm generates neighborhoodsby combining the main concepts of variable neighborhood search, simulated annealing, and tabu search and finds the local optima by using an algorithm that uses an exact method in its framework. Finally, to test the algorithms’ performance, we apply numerical experiments on both randomly generated and standard test problems. Computational experiments show that our algorithm is more effective and efficient in term of CPU time and solutions quality in comparison with CPLEX solver

Modular Capacitated Maximal Covering Location Problem for the Optimal Siting of Emergency Vehicles

To improve the application of the maximal covering location problem (MCLP), several capacitated MCLP models were proposed to consider the capacity limits of facilities. However, most of these models assume only one fixed capacity level for the facility at each potential site. This assumption may limit the application of the capacitated MCLP. In this article, a modular capacitated maximal covering location problem (MCMCLP) is proposed and formulated to allow several possible capacity levels for the facility at each potential site. To optimally site emergency vehicles, this new model also considers allocations of the demands beyond the service covering standard. Two situations of the model are discussed: the MCMCLP-facility-constraint (FC), which fixes the total number of facilities to be located, and the MCMCLP-non-facility-constraint (NFC), which does not. In addition to the model formulations, one important aspect of location modeling—spatial demand representation—is included in the analysis and discussion. As an example, the MCMCLP is applied with Geographic Information System (GIS) and optimization software packages to optimally site ambulances for the Emergency Medical Services (EMS) Region 10 in the State of Georgia. The limitations of the model are also discussed

The incorporation of fixed cost and multilevel capacities into the discrete and continuous single source capacitated facility location problem

In this study we investigate the single source location problem with the presence of several possible capacities and the opening (fixed) cost of a facility that is depended on the capacity used and the area where the facility is located. Mathematical models of the problem for both the discrete and the continuous cases using the Rectilinear and Euclidean distances are produced. Our aim is to find the optimal number of open facilities, their corresponding locations, and their respective capacities alongside the assignment of the customers to the open facilities in order to minimise the total fixed and transportation costs. For relatively large problems, two solution methods are proposed namely an iterative matheuristic approach and VNS-based matheuristic technique. Dataset from the literature is adapted to assess our proposed methods. To assess the performance of the proposed solution methods, the exact method is first applied to small size instances where optimal solutions can be identified or lower and upper bounds can be recorded. Results obtained by the proposed solution methods are also reported for the larger instances

The continuous single source location problem with capacity and zone-dependent fixed cost: Models and solution approaches

The continuous capacitated single-source multi-facility Weber problem with the presence of facility fixed cost is investigated. A new mathematical model which incorporates multi-level type capacity (or design) and facility fixed cost that is capacity-based and zone-dependent is introduced. As no data set exists for this new location problem, a new data set based on convex polygons using triangular shape is constructed. A generalised two stage heuristic scheme that combines the concept of aggregation, an exact method, and an enhanced Cooper’s alternate location-allocation method is put forward. A framework that embeds Variable Neighbourhood Search is also proposed. Computational experiments show that these matheuristics produce encouraging results for this class of location problems. The proposed approaches are also easily adapted to cater for a recently studied variant namely the single-source capacitated multi-facility Weber problem where they outperform those recently published solution method

Solving the bi-objective capacitated p-median problem with multilevel capacities using compromise programming and VNS

A bi-objective optimisation using a compromise programming (CP) approach is proposed for the capacitated p-median problem (CPMP) in the presence of the fixed cost of opening facility and several possible capacities that can be used by potential facilities. As the sum of distances between customers and their facilities and the total fixed cost for opening facilities are important aspects, the model is proposed to deal with those conflicting objectives. We develop a mathematical model using integer linear programming (ILP) to determine the optimal location of open facilities with their optimal capacity. Two approaches are designed to deal with the bi-objective CPMP, namely CP with an exact method and with a variable neighbourhood search (VNS) based matheuristic. New sets of generated instances are used to evaluate the performance of the proposed approaches. The computational experiments show that the proposed approaches produce interesting results