IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v272y2019i1d10.1007_s10479-017-2517-0.html
   My bibliography  Save this article

Managing facility disruption in hub-and-spoke networks: formulations and efficient solution methods

Author

Listed:
  • Nader Azizi

    (University of Kent)

Abstract

Hub disruption result in substantially higher transportation cost and customer dissatisfaction. In this study, first a mathematical model to design hub-and-spoke networks under hub failure is presented. For a fast and inexpensive recovery, the proposed model constructs networks in which every single demand point will have a backup hub to be served from in case of disruption. The problem is formulated as a mixed integer quadratic program in a way that could be linearized without significantly increasing the number of variables. To further ease the model’ computational burden, indicator constraints are employed in the linearized model. The resulting formulation produced optimal solutions for small and some medium size instances. To tackle large problems, three efficient particle swarm optimisation-based metaheuristics which incorporate efficient solution representation, short-term memory and special crossover operator are proposed. We present the results for two scenarios relating to high and low probabilities of hub failures and provide managerial insight. The computational results, using problem instances with various sizes taken from CAB and TR datasets, confirm the effectiveness and efficiency of the proposed problem formulation and our new solution techniques.

Suggested Citation

  • Nader Azizi, 2019. "Managing facility disruption in hub-and-spoke networks: formulations and efficient solution methods," Annals of Operations Research, Springer, vol. 272(1), pages 159-185, January.
    • Handle: RePEc:spr:annopr:v:272:y:2019:i:1:d:10.1007_s10479-017-2517-0
    DOI: 10.1007/s10479-017-2517-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-017-2517-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-017-2517-0?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. An, Yu & Zhang, Yu & Zeng, Bo, 2015. "The reliable hub-and-spoke design problem: Models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 103-122.
    2. 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.
    3. Kratica, Jozef & Stanimirovic, Zorica & Tosic, Dusan & Filipovic, Vladimir, 2007. "Two genetic algorithms for solving the uncapacitated single allocation p-hub median problem," European Journal of Operational Research, Elsevier, vol. 182(1), pages 15-28, October.
    4. J. F. Campbell & A. T. Ernst & M. Krishnamoorthy, 2005. "Hub Arc Location Problems: Part I---Introduction and Results," Management Science, INFORMS, vol. 51(10), pages 1540-1555, October.
    5. 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.
    6. Samir Elhedhli & Huyu Wu, 2010. "A Lagrangean Heuristic for Hub-and-Spoke System Design with Capacity Selection and Congestion," INFORMS Journal on Computing, INFORMS, vol. 22(2), pages 282-296, May.
    7. 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.
    8. A. T. Ernst & M. Krishnamoorthy, 1998. "An Exact Solution Approach Based on Shortest-Paths for p -Hub Median Problems," INFORMS Journal on Computing, INFORMS, vol. 10(2), pages 149-162, May.
    9. Lawrence V. Snyder & Mark S. Daskin, 2005. "Reliability Models for Facility Location: The Expected Failure Cost Case," Transportation Science, INFORMS, vol. 39(3), pages 400-416, August.
    10. 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.
    11. Ivan Contreras, 2015. "Hub Location Problems," Springer Books, in: Gilbert Laporte & Stefan Nickel & Francisco Saldanha da Gama (ed.), Location Science, edition 127, chapter 0, pages 311-344, Springer.
    12. 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.
    13. Abdinnour-Helm, Sue, 1998. "A hybrid heuristic for the uncapacitated hub location problem," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 489-499, April.
    14. 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.
    15. 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.
    16. J. F. Campbell & A. T. Ernst & M. Krishnamoorthy, 2005. "Hub Arc Location Problems: Part II---Formulations and Optimal Algorithms," Management Science, INFORMS, vol. 51(10), pages 1556-1571, October.
    17. Trung Hieu Tran & Jesse R. O’Hanley & M. Paola Scaparra, 2017. "Reliable Hub Network Design: Formulation and Solution Techniques," Transportation Science, INFORMS, vol. 51(1), pages 358-375, February.
    18. Elisangela Martins de Sá & Ivan Contreras & Jean-François Cordeau & Ricardo Saraiva de Camargo & Gilberto de Miranda, 2015. "The Hub Line Location Problem," Transportation Science, INFORMS, vol. 49(3), pages 500-518, August.
    19. Lawrence V. Snyder & Zümbül Atan & Peng Peng & Ying Rong & Amanda J. Schmitt & Burcu Sinsoysal, 2016. "OR/MS models for supply chain disruptions: a review," IISE Transactions, Taylor & Francis Journals, vol. 48(2), pages 89-109, 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. Azizi, Nader & Salhi, Said, 2022. "Reliable hub-and-spoke systems with multiple capacity levels and flow dependent discount factor," European Journal of Operational Research, Elsevier, vol. 298(3), pages 834-854.
    2. Zhongyun Yue & John Mangan, 2024. "A framework for understanding reliability in container shipping networks," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(3), pages 523-544, September.
    3. Tingting Li & Wangtu Xu, 2024. "Reliable multiple allocation hub location problem under disruptions," Flexible Services and Manufacturing Journal, Springer, vol. 36(4), pages 1503-1529, December.
    4. Firoozeh Kaveh & Reza Tavakkoli-Moghaddam & Chefi Triki & Yaser Rahimi & Amin Jamili, 2021. "A new bi-objective model of the urban public transportation hub network design under uncertainty," Annals of Operations Research, Springer, vol. 296(1), pages 131-162, January.
    5. Lu, Xiaohan & Cheng, Chun, 2021. "Locating facilities with resiliency to capacity failures and correlated demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    6. Ginger Y. Ke, 2022. "Managing rail-truck intermodal transportation for hazardous materials with random yard disruptions," Annals of Operations Research, Springer, vol. 309(2), pages 457-483, February.

    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. 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.
    3. Trung Hieu Tran & Jesse R. O’Hanley & M. Paola Scaparra, 2017. "Reliable Hub Network Design: Formulation and Solution Techniques," Transportation Science, INFORMS, vol. 51(1), pages 358-375, February.
    4. Azizi, Nader & Salhi, Said, 2022. "Reliable hub-and-spoke systems with multiple capacity levels and flow dependent discount factor," European Journal of Operational Research, Elsevier, vol. 298(3), pages 834-854.
    5. 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.
    6. 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.
    7. J. Fabian Meier & Uwe Clausen, 2018. "Solving Single Allocation Hub Location Problems on Euclidean Data," Transportation Science, INFORMS, vol. 52(5), pages 1141-1155, October.
    8. 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.
    9. Sneha Dhyani Bhatt & Sachin Jayaswal & Ankur Sinha & Navneet Vidyarthi, 2021. "Alternate second order conic program reformulations for hub location under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 304(1), pages 481-527, September.
    10. 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.
    11. Hu, Lu & Zhu, Juan Xiu & Wang, Yuan & Lee, Loo Hay, 2018. "Joint design of fleet size, hub locations, and hub capacities for third-party logistics networks with road congestion constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 568-588.
    12. Taherkhani, Gita & Alumur, Sibel A., 2019. "Profit maximizing hub location problems," Omega, Elsevier, vol. 86(C), pages 1-15.
    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. Erdoğan, Güneş & Battarra, Maria & Rodríguez-Chía, Antonio M., 2022. "The hub location and pricing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1035-1047.
    15. An, Yu & Zhang, Yu & Zeng, Bo, 2015. "The reliable hub-and-spoke design problem: Models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 103-122.
    16. 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.
    17. 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.
    18. 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).
    19. Alibeyg, Armaghan & Contreras, Ivan & Fernández, Elena, 2016. "Hub network design problems with profits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 40-59.
    20. Alibeyg, Armaghan & Contreras, Ivan & Fernández, Elena, 2018. "Exact solution of hub network design problems with profits," European Journal of Operational Research, Elsevier, vol. 266(1), pages 57-71.

    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:spr:annopr:v:272:y:2019:i:1:d:10.1007_s10479-017-2517-0. 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.