Hub Location and thep-Hub Median Problem
Operations Research · 1996 · Volume 44 · Issue 6
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.
Keywords
facilities/equipment planning, location, hub location, transportation, models, location, single and multiple allocation
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