IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v70y2014icp356-373.html
   My bibliography  Save this article

Robust hub network design problem

Author

Listed:
  • Shahabi, Mehrdad
  • Unnikrishnan, Avinash

Abstract

This paper presents a robust formulation for the uncapacitated single and multiple allocation hub location problem where demand is uncertain and its distribution is not fully specified. The proposed robust model is formulated as a mixed integer nonlinear program and then transformed into a mixed integer conic quadratic program. An efficient linear relaxation strategy is proposed which is found to deliver the optimal solutions for all the cases considered in this paper. Numerical experiments suggest location of more number of hubs when accounting for demand uncertainty using robust optimization compared to the deterministic setting.

Suggested Citation

  • Shahabi, Mehrdad & Unnikrishnan, Avinash, 2014. "Robust hub network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 356-373.
    • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:356-373
    DOI: 10.1016/j.tre.2014.08.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554514001434
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2014.08.003?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. Gülpınar, Nalan & Pachamanova, Dessislava & Çanakoğlu, Ethem, 2013. "Robust strategies for facility location under uncertainty," European Journal of Operational Research, Elsevier, vol. 225(1), pages 21-35.
    2. Dimitris Bertsimas & Melvyn Sim, 2004. "The Price of Robustness," Operations Research, INFORMS, vol. 52(1), pages 35-53, February.
    3. Turgut Aykin, 1995. "Networking Policies for Hub-and-Spoke Systems with Application to the Air Transportation System," Transportation Science, INFORMS, vol. 29(3), pages 201-221, August.
    4. 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.
    5. Ebery, Jamie & Krishnamoorthy, Mohan & Ernst, Andreas & Boland, Natashia, 2000. "The capacitated multiple allocation hub location problem: Formulations and algorithms," European Journal of Operational Research, Elsevier, vol. 120(3), pages 614-631, February.
    6. Xin Chen & Melvyn Sim & Peng Sun, 2007. "A Robust Optimization Perspective on Stochastic Programming," Operations Research, INFORMS, vol. 55(6), pages 1058-1071, December.
    7. Xin Chen & Melvyn Sim & Peng Sun & Jiawei Zhang, 2008. "A Linear Decision-Based Approximation Approach to Stochastic Programming," Operations Research, INFORMS, vol. 56(2), pages 344-357, April.
    8. 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.
    9. Aros-Vera, Felipe & Marianov, Vladimir & Mitchell, John E., 2013. "p-Hub approach for the optimal park-and-ride facility location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 277-285.
    10. Gregory Dobson & Phillip J. Lederer, 1993. "Airline Scheduling and Routing in a Hub-and-Spoke System," Transportation Science, INFORMS, vol. 27(3), pages 281-297, August.
    11. 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.
    12. 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.
    13. 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.
    14. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    15. Jeong, Seung-Ju & Lee, Chi-Guhn & Bookbinder, James H., 2007. "The European freight railway system as a hub-and-spoke network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 523-536, July.
    16. Mehrdad Shahabi & Shirin Akbarinasaji & Avinash Unnikrishnan & Rachel James, 2013. "Integrated Inventory Control and Facility Location Decisions in a Multi-Echelon Supply Chain Network with Hubs," Networks and Spatial Economics, Springer, vol. 13(4), pages 497-514, December.
    17. Mari'n, Alfredo & Canovas, Lazaro & Landete, Mercedes, 2006. "New formulations for the uncapacitated multiple allocation hub location problem," European Journal of Operational Research, Elsevier, vol. 172(1), pages 274-292, July.
    18. 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.
    19. Avinash Unnikrishnan & Varunraj Valsaraj & Steven Waller, 2009. "Stochastic and Dynamic Shipper Carrier Network Design Problem," Networks and Spatial Economics, Springer, vol. 9(4), pages 525-550, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhalechian, M. & Torabi, S. Ali & Mohammadi, M., 2018. "Hub-and-spoke network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 20-43.
    2. Paul, Jomon Aliyas & Wang, Xinfang (Jocelyn), 2015. "Robust optimization for United States Department of Agriculture food aid bid allocations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 129-146.
    3. 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).
    4. 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.
    5. Guillot, Matthieu & Rey, David & Furno, Angelo & El Faouzi, Nour-Eddin, 2024. "A stochastic hub location and fleet assignment problem for the design of reconfigurable park-and-ride systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    6. 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.
    7. Khalilikhah, Majid & Habibian, Meeghat & Heaslip, Kevin, 2016. "Acceptability of increasing petrol price as a TDM pricing policy: A case study in Tehran," Transport Policy, Elsevier, vol. 45(C), pages 136-144.
    8. 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).
    9. Zetina, Carlos Armando & Contreras, Ivan & Cordeau, Jean-François & Nikbakhsh, Ehsan, 2017. "Robust uncapacitated hub location," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 393-410.
    10. Niknamfar, Amir Hossein & Niaki, Seyed Taghi Akhavan, 2016. "Fair profit contract for a carrier collaboration framework in a green hub network under soft time-windows: Dual lexicographic max–min approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 129-151.
    11. Ding, Bingqing & Makowski, Marek & Nahorski, Zbigniew & Ren, Hongtao & Ma, Tieju, 2022. "Optimizing the technology pathway of China's liquid fuel production considering uncertain oil prices: A robust programming model," Energy Economics, Elsevier, vol. 115(C).
    12. Chen, Dongxu & Yang, Zhongzhen, 2018. "Systematic optimization of port clusters along the Maritime Silk Road in the context of industry transfer and production capacity constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 174-189.
    13. 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.
    14. 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.

    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. Taherkhani, Gita & Alumur, Sibel A., 2019. "Profit maximizing hub location problems," Omega, Elsevier, vol. 86(C), pages 1-15.
    2. de Sá, Elisangela Martins & de Camargo, Ricardo Saraiva & de Miranda, Gilberto, 2013. "An improved Benders decomposition algorithm for the tree of hubs location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 185-202.
    3. 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.
    4. Contreras, Ivan & Fernández, Elena & Marín, Alfredo, 2010. "The Tree of Hubs Location Problem," European Journal of Operational Research, Elsevier, vol. 202(2), pages 390-400, April.
    5. 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.
    6. Contreras, Ivan & Fernández, Elena, 2012. "General network design: A unified view of combined location and network design problems," European Journal of Operational Research, Elsevier, vol. 219(3), pages 680-697.
    7. 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.
    8. 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.
    9. F. Parvaresh & S. Hashemi Golpayegany & S. Moattar Husseini & B. Karimi, 2013. "Solving the p-hub Median Problem Under Intentional Disruptions Using Simulated Annealing," Networks and Spatial Economics, Springer, vol. 13(4), pages 445-470, December.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Gelareh, Shahin & Nickel, Stefan, 2011. "Hub location problems in transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1092-1111.
    15. Yaman, Hande, 2011. "Allocation strategies in hub networks," European Journal of Operational Research, Elsevier, vol. 211(3), pages 442-451, June.
    16. Yuan, Yun & Yu, Jie, 2018. "Locating transit hubs in a multi-modal transportation network: A cluster-based optimization approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 85-103.
    17. 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.
    18. Jayaswal, Sachin & Vidyarthi, Navneet, 2013. "Capacitated Multiple Allocation Hub Location with Service Level Constraints for Multiple Consignment Classes," IIMA Working Papers WP2013-11-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    19. Yu, Bin & Zhu, Hanbing & Cai, Wanjun & Ma, Ning & Kuang, Qiji & Yao, Baozhen, 2013. "Two-phase optimization approach to transit hub location – the case of Dalian," Journal of Transport Geography, Elsevier, vol. 33(C), pages 62-71.
    20. 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.

    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:eee:transe:v:70:y:2014:i:c:p:356-373. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.