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Hub Location and the p -Hub Median Problem

Author

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  • James F. Campbell

    (University of Missouri, St. Louis, Missouri)

Abstract

Hub facilities serve as switching and transshipment points in transportation and communication networks. Hub networks concentrate flows on the hub-to-hub links and benefit from economies of scale in interhub transportation. Most hub location research has focused on problems where each origin/destination is allocated to a single hub. However, multiple allocation to more than one hub is necessary to minimize total transportation costs. This paper defines a p -hub median, analogous to a p -median, and presents integer programming formulations for the multiple and single allocation p -hub median problems. Two new heuristics for the single allocation p -hub median problem are evaluated. These heuristics derive a solution to the single allocation p -hub median problem from the solution to the multiple allocation p -hub median problem. Computational results are presented for problems with 10–40 origins/destinations and up to eight hubs. The new heuristics generally perform well in comparison with other heuristics.

Suggested Citation

  • James F. Campbell, 1996. "Hub Location and the p -Hub Median Problem," Operations Research, INFORMS, vol. 44(6), pages 923-935, December.
    • Handle: RePEc:inm:oropre:v:44:y:1996:i:6:p:923-935
    DOI: 10.1287/opre.44.6.923
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