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A conditional β-mean approach to risk-averse stochastic multiple allocation hub location problems

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  • Ghaffarinasab, Nader
  • Kara, Bahar Y.

Abstract

This paper addresses risk-averse stochastic hub location problems where the risk is measured using the conditional β-mean criterion. Three variants of the classical multiple allocation hub location problem, namely the p-hub median, the p-hub maximal covering, and the weighted p-hub center problems are studied under demand data uncertainty represented by a finite set of scenarios. Novel mixed-integer linear programming formulations are proposed for the problems and exact algorithms based on Benders decomposition are developed for solving large instances of the problems. A large set of computational tests are conducted so that the efficiency of the proposed algorithms is proved and the effect of various input parameters on the optimal solutions is analyzed.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:transe:v:158:y:2022:i:c:s1366554521003574
    DOI: 10.1016/j.tre.2021.102602
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    4. Rahmati, Reza & Neghabi, Hossein & Bashiri, Mahdi & Salari, Majid, 2023. "Stochastic regional-based profit-maximizing hub location problem: A sustainable overview," Omega, Elsevier, vol. 121(C).
    5. Andaryan, Abdullah Zareh & Mousighichi, Kasra & Ghaffarinasab, Nader, 2024. "A heuristic approach to the stochastic capacitated single allocation hub location problem with Bernoulli demands," European Journal of Operational Research, Elsevier, vol. 312(3), pages 954-968.
    6. Mrabti, Nassim & Hamani, Nadia & Boulaksil, Youssef & Amine Gargouri, Mohamed & Delahoche, Laurent, 2022. "A multi-objective optimization model for the problems of sustainable collaborative hub location and cost sharing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).

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