IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v16y2016i4d10.1007_s11067-015-9314-6.html
   My bibliography  Save this article

Endogenous Effects of Hubbing on Flow Intensities

Author

Listed:
  • Mehmet R. Taner

    (TED University)

  • Bahar Y. Kara

    (Bilkent University)

Abstract

Location of hub facilities and the allocation decisions in transport networks endogenously affect both the flow intensities and the transportation costs. Since the introduction of the hub location problem to the operations research literature in mid-1980s, many researchers investigated different ways of modelling the effects of hub facilities on the transportation costs. On the other hand, there has been very limited research on their effect on the flow intensities. This study proposes a new approach, inspired by the Bass diffusion model, to forecast the change in the demand patterns generated at different locations as a result of the placement of new hubs. This new model is used in the context of the uncapacitated single allocation p-hub median problem to investigate the effects of endogenous attraction, caused by the spatial interaction of present hubs, on future hub location decisions. Computational results indicate that the location and allocation decisions may be greatly affected when these forecasts are taken into account in the selection of future hub locations.

Suggested Citation

  • Mehmet R. Taner & Bahar Y. Kara, 2016. "Endogenous Effects of Hubbing on Flow Intensities," Networks and Spatial Economics, Springer, vol. 16(4), pages 1151-1181, December.
    • Handle: RePEc:kap:netspa:v:16:y:2016:i:4:d:10.1007_s11067-015-9314-6
    DOI: 10.1007/s11067-015-9314-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11067-015-9314-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11067-015-9314-6?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. 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.
    2. Juan Martín & Augusto Voltes-Dorta, 2008. "Theoretical Evidence of Existing Pitfalls in Measuring Hubbing Practices in Airline Networks," Networks and Spatial Economics, Springer, vol. 8(2), pages 161-181, September.
    3. Isabel Correia & Stefan Nickel & Francisco Saldanha-da-Gama, 2014. "Multi-product Capacitated Single-Allocation Hub Location Problems: Formulations and Inequalities," Networks and Spatial Economics, Springer, vol. 14(1), pages 1-25, March.
    4. John Klincewicz, 2002. "Enumeration and Search Procedures for a Hub Location Problem with Economies of Scale," Annals of Operations Research, Springer, vol. 110(1), pages 107-122, February.
    5. Alf Kimms, 2006. "Economies of Scale in Hub & Spoke Network Design Models: We Have It All Wrong," Springer Books, in: Martin Morlock & Christoph Schwindt & Norbert Trautmann & Jürgen Zimmermann (ed.), Perspectives on Operations Research, pages 293-317, Springer.
    6. Campbell, James F., 1990. "Locating transportation terminals to serve an expanding demand," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 173-192, June.
    7. Campbell, James F., 1990. "Freight consolidation and routing with transportation economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 24(5), pages 345-361, October.
    8. Cunha, Claudio B. & Silva, Marcos Roberto, 2007. "A genetic algorithm for the problem of configuring a hub-and-spoke network for a LTL trucking company in Brazil," European Journal of Operational Research, Elsevier, vol. 179(3), pages 747-758, June.
    9. Frank M. Bass, 2004. "Comments on "A New Product Growth for Model Consumer Durables The Bass Model"," Management Science, INFORMS, vol. 50(12_supple), pages 1833-1840, December.
    10. Bahar Y. Kara & Mehmet R. Taner, 2011. "Hub Location Problems: The Location of Interacting Facilities," International Series in Operations Research & Management Science, in: H. A. Eiselt & Vladimir Marianov (ed.), Foundations of Location Analysis, chapter 0, pages 273-288, Springer.
    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. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    13. 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.
    14. Correia, Isabel & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2010. "The capacitated single-allocation hub location problem revisited: A note on a classical formulation," European Journal of Operational Research, Elsevier, vol. 207(1), pages 92-96, November.
    15. 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.
    16. Racunica, Illia & Wynter, Laura, 2005. "Optimal location of intermodal freight hubs," Transportation Research Part B: Methodological, Elsevier, vol. 39(5), pages 453-477, June.
    17. A.T. Ernst & M. Krishnamoorthy, 1999. "Solution algorithms for the capacitated single allocation hub location problem," Annals of Operations Research, Springer, vol. 86(0), pages 141-159, January.
    18. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    19. Bruce Robinson & Chet Lakhani, 1975. "Dynamic Price Models for New-Product Planning," Management Science, INFORMS, vol. 21(10), pages 1113-1122, June.
    20. Frank M. Bass, 2004. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 50(12_supple), pages 1825-1832, December.
    21. Wagner, Bernd, 2004. "Model formulations for hub covering problems," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 20662, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    22. Ricardo Saraiva de Camargo & Gilberto de Miranda & Henrique Pacca L. Luna, 2009. "Benders Decomposition for Hub Location Problems with Economies of Scale," Transportation Science, INFORMS, vol. 43(1), pages 86-97, February.
    23. Ivan Contreras & Jean-François Cordeau & Gilbert Laporte, 2011. "The Dynamic Uncapacitated Hub Location Problem," Transportation Science, INFORMS, vol. 45(1), pages 18-32, February.
    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. Nader Ghaffarinasab & Bahar Y. Kara, 2019. "Benders Decomposition Algorithms for Two Variants of the Single Allocation Hub Location Problem," Networks and Spatial Economics, Springer, vol. 19(1), pages 83-108, March.
    2. Paolo Malighetti & Gianmaria Martini & Renato Redondi & Davide Scotti, 2019. "Integrators’ Air Transport Networks in Europe," Networks and Spatial Economics, Springer, vol. 19(2), pages 557-581, June.
    3. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.

    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. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    2. 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.
    3. Neamatian Monemi, Rahimeh & Gelareh, Shahin & Nagih, Anass & Maculan, Nelson & Danach, Kassem, 2021. "Multi-period hub location problem with serial demands: A case study of humanitarian aids distribution in Lebanon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    4. 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.
    5. Gelareh, Shahin & Neamatian Monemi, Rahimeh & Nickel, Stefan, 2015. "Multi-period hub location problems in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 67-94.
    6. 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.
    7. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    8. Lüer-Villagra, Armin & Marianov, Vladimir, 2013. "A competitive hub location and pricing problem," European Journal of Operational Research, Elsevier, vol. 231(3), pages 734-744.
    9. AL Athamneh, Raed & Tanash, Moayad & Bani Hani, Dania & Rawshdeh, Mustafa & Alawin, Abdallah & Albataineh, Zaid, 2023. "Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections," Operations Research Perspectives, Elsevier, vol. 11(C).
    10. Jayaswal, Sachin & Vidyarthi, Navneet, 2023. "Multiple allocation hub location with service level constraints for two shipment classes," European Journal of Operational Research, Elsevier, vol. 309(2), pages 634-655.
    11. Ivan Contreras & Jean-François Cordeau & Gilbert Laporte, 2012. "Exact Solution of Large-Scale Hub Location Problems with Multiple Capacity Levels," Transportation Science, INFORMS, vol. 46(4), pages 439-459, November.
    12. Ricardo Saraiva de Camargo & Gilberto de Miranda & Henrique Pacca L. Luna, 2009. "Benders Decomposition for Hub Location Problems with Economies of Scale," Transportation Science, INFORMS, vol. 43(1), pages 86-97, February.
    13. Taherkhani, Gita & Alumur, Sibel A., 2019. "Profit maximizing hub location problems," Omega, Elsevier, vol. 86(C), pages 1-15.
    14. Masaeli, Mobina & Alumur, Sibel A. & Bookbinder, James H., 2018. "Shipment scheduling in hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 115(C), pages 126-142.
    15. Ramamoorthy, Prasanna & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2018. "Multiple allocation hub interdiction and protection problems: Model formulations and solution approaches," European Journal of Operational Research, Elsevier, vol. 270(1), pages 230-245.
    16. Hüseyin Güden, 2021. "New complexity results for the p-hub median problem," Annals of Operations Research, Springer, vol. 298(1), pages 229-247, March.
    17. Meltem Peker & Bahar Y. Kara & James F. Campbell & Sibel A. Alumur, 2016. "Spatial Analysis of Single Allocation Hub Location Problems," Networks and Spatial Economics, Springer, vol. 16(4), pages 1075-1101, December.
    18. 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.
    19. 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.
    20. Correia, Isabel & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2018. "A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and inequalities," Omega, Elsevier, vol. 74(C), pages 122-134.

    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:kap:netspa:v:16:y:2016:i:4:d:10.1007_s11067-015-9314-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.