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

Genetic Algorithm for Solving Uncapacitated Multiple Allocation Hub Location Problem

Hub location problems are widely used for network designing. Many variations of these problems can be found in the literature. In this paper we deal with the uncapacitated multiple allocation hub location problem (UMAHLP). We propose a genetic algorithm (GA) for solving UMAHLP that uses binary encoding and genetic operators adapted to the problem. Overall performance of GA implementation is improved by caching technique. We present the results of our computational experience on standard ORLIB instances with up to 200 nodes. The results show that GA approach quickly reaches all optimal solutions that are known so far and also gives results on some large-scale instances that were unsolved before

Allocation Strategies in Hub Networks

Cataloged from PDF version of article.In this paper, we study allocation strategies and their effects on total routing costs in hub networks. Given a set of nodes with pairwise traffic demands, the p-hub median problem is the problem of choosing p nodes as hub locations and routing traffic through these hubs at minimum cost. This problem has two versions; in single allocation problems, each node can send and receive traffic through a single hub, whereas in multiple allocation problems, there is no such restriction and a node may send and receive its traffic through all p hubs. This results in high fixed costs and complicated networks. In this study, we introduce the r-allocation p-hub median problem, where each node can be connected to at most r hubs. This new problem generalizes the two versions of the p-hub median problem. We derive mixed-integer programming formulations for this problem and perform a computational study using well-known datasets. For these datasets, we conclude that single allocation solutions are considerably more expensive than multiple allocation solutions, but significant savings can be achieved by allowing nodes to be allocated to two or three hubs rather than one. We also present models for variations of this problem with service quality considerations, flow thresholds, and non-stop service. (C) 2011 Elsevier B.V. All rights reserved

Stochastic hub and spoke networks

Transportation systems such as mail, freight, passenger and even telecommunication systems most often employ a hub and spoke network structure since correctly designed they give a strong balance between high service quality and low costs resulting in an economically competitive operation. In addition, consumers are increasingly demanding fast and reliable transportation services, with services such as next day deliveries and fast business and pleasure trips becoming highly sought after. This makes finding an efficient design of a hub and spoke network of the utmost importance for any competing transportation company. However real life situations are complicated, dynamic and often require responses to many different fixed and random events. Therefore modeling the question of what is an optimal hub and spoke network structure and finding an optimal solution is very difficult. Due to this, many researchers and practitioners alike make several assumptions and simplifications on the behavior of such systems to allow mathematical models to be formulated and solved optimally or near optimally within a practical timeframe. Some assumptions and simplifications can however result in practically poor network design solutions being found. This thesis contributes to the research of hub and spoke networks by introducing new stochastic models and fast solution algorithms to help bridge the gap between theoretical solutions and designs that are useful in practice. Three main contributions are made in the thesis. First, in Chapter 2, a new formulation and solution algorithms are proposed to find exact solutions to a stochastic p-hub center problem. The stochastic p-hub center problem is about finding a network structure, where travel times on links are stochastic, which minimizes the longest path in the network to give fast delivery guarantees which will hold for some given probability. Second, in Chapter 3, the stochastic p-hub center problem is looked at using a new methodological approach which gives more realistic solutions to the network structures when applied to real life situations. In addition a new service model is proposed where volume of flow is also accounted for when considering the stochastic nature of travel times on links. Third, in Chapter 4, stochastic volume is considered to account for capacity constraints at hubs and, de facto, reduce the costs embedded in excessive hub volumes. Numerical experiments and results are conducted and reported for all models in all chapters which demonstrate the efficiency of the new proposed approaches

The latest arrival hub location problem for cargo delivery systems with stopovers

Cataloged from PDF version of article.In this paper, we concentrate on the service structure of ground-transportation based cargo delivery companies. The transient times that arise from nonsimultaneous arrivals at hubs (typically spent for unloading, loading, and sorting operations) can constitute a significant portion of the total delivery time for cargo delivery systems. The latest arrival hub location problem is a new minimax model that focuses on the minimization of the arrival time of the last item to arrive, taking into account journey times as well as the transient times at hubs. We first focus on a typical cargo delivery firm operating in Turkey and observe that stopovers are essential components of a ground-based cargo delivery system. The existing formulations of the hub location problem in the literature do not allow stopovers since they assume direct connections between demand centers and hubs. In this paper, we propose a generic mathematical model, which allows stopovers for the latest arrival hub location problem. We improve the model using valid inequalities and lifting. We present computational results using data from the US and Turkey. 2007 Elsevier Ltd. All rights reserved

The design of single allocation incomplete hub networks

Cataloged from PDF version of article.The hub location problem deals with finding the location of hub facilities and allocating the demand nodes to these hub facilities so as to effectively route the demand between any origin–destination pair. In the extensive literature on this challenging network design problem, it has widely been assumed that the subgraph induced by the hub nodes is complete. Relaxation of this basic assumption constitutes the starting point of the present work. In this study, we provide a uniform modeling treatment to all the single allocation variants of the existing hub location problems, under the incomplete hub network design. No network structure other than connectivity is imposed on the induced hub network. Within this context, the single allocation incomplete p-hub median, the incomplete hub location with fixed costs, the incomplete hub covering, and the incomplete p-hub center network design problems are defined, and efficient mathematical formulations for these problems with Oðn3Þ variables are introduced. Computational analyses with these formulations are presented on the various instances of the CAB data set and on the Turkish network. 2009 Elsevier Ltd. All rights reserved

Incremental Optimization of Hub and Spoke Network for the Spokes’ Numbers and Flow

Hub and spoke network problem is solved as part of a strategic decision making process which may have a profound effect on the future of enterprises. In view of the existing network structure, as time goes on, the number of spokes and the flow change because of different sources of uncertainty. Hence, the incremental optimization of hub and spoke network problem is considered in this paper, and the policy makers should adopt a series of strategies to cope with the change, such as setting up new hubs, adjusting the capacity level of original hubs, or closing some original hubs. The objective is to minimize the total cost, which includes the setup costs for the new hubs, the closure costs, and the adjustment costs for the original hubs as well as the flow routing costs. Two mixed-integer linear programming formulations are proposed and analyzed for this problem. China Deppon Logistics as an example is performed to present computational analysis, and we analyze the changes in the solutions driven by the number of spokes and the flow. The tests also allow an analysis to consider the effect of variation in parameters on network

Lagrangian Relaxation for q-Hub Arc Location Problems

The topic of this Master thesis is an in-depth research study on a specific type of network systems known as hub-and-spoke networks. In particular, we study q-Hub Arc Location Problems that consist, at a strategical level, of selecting q hub arcs and at most p hub nodes, and of the routing of commodities through the so called hub level network. We propose strong formulations to two variants of the problem, namely the q-hub arc location problem and the $q$-hub arc location problem with isolated hub nodes. We present a Lagrangian relaxation that exploits the structure of these problems by decomposing them into |K|+2 independent easy-to-solve subproblems and develop Lagrangian heuristics that yield high quality feasible solutions to both models. We, further, provide some insights on the structure of the optimal solutions to both models and investigate the cost benefit of incomplete hub networks with and without isolated hub nodes. Finally, computational results on a set of benchmark instances with up to 100 nodes are reported to assess the performance of the proposed MIP formulations and of our algorithmic approach