Location of hubs in a competitive environment

We offer a formulation that locates hubs on a network in a competitive environment; that is, customer capture is sought, which happens whenever the location of a new hub results in a reduction of the current cost (time, distance) needed by the traffic that goes from the specified origin to the specified destination. The formulation presented here reduces the number of variables and constraints as compared to existing covering models. This model is suited for both air passenger and cargo transportation. In this model, each origin-destination flow can go through either one or two hubs, and each demand point can be assigned to more than a hub, depending on the different destinations of its traffic. Links (``spokes'' have no capacity limit. Computational experience is provided.

[1]  Fred W. Glover,et al.  Tabu Search - Part I , 1989, INFORMS J. Comput..

[2]  D. Skorin-Kapov,et al.  On tabu search for the location of interacting hub facilities , 1994 .

[3]  F. Glover.  HEURISTICS FOR INTEGER PROGRAMMING USING SURROGATE CONSTRAINTS , 1977 .

[4]  James F. Campbell.  CONTINUOUS AND DISCRETE DEMAND HUB LOCATION PROBLEMS , 1993 .

[5]  James F. Campbell.  Hub Location and the p-Hub Median Problem , 1996, Oper. Res..

[6]  Morton E. O'Kelly,et al.  Spatial Interaction Models:Formulations and Applications , 1988 .

[7]  J. G. Klincewicz,et al.  Avoiding local optima in thep-hub location problem using tabu search and GRASP , 1993, Ann. Oper. Res..

[8]  Morton E. O'Kelly,et al.  The Location of Interacting Hub Facilities , 1986, Transp. Sci..

[9]  Polly Bart,et al.  Heuristic Methods for Estimating the Generalized Vertex Median of a Weighted Graph , 1968, Oper. Res..

[10]  Andreas T. Ernst,et al.  Exact and heuristic algorithms for the uncapacitated multiple allocation p-hub median problem , 1998 .

[11]  Hasan Pirkul,et al.  Locating concentrators for primary and secondary coverage in a computer communications network , 1988, IEEE Trans. Commun..

[12]  Jadranka Skorin-Kapov,et al.  Tabu Search Applied to the Quadratic Assignment Problem , 1990, INFORMS J. Comput..

[13]  D. Skorin-Kapov,et al.  Tight linear programming relaxations of uncapacitated p-hub median problems , 1996 .

[14]  Paul J. Densham,et al.  A more efficient heuristic for solving largep-median problems , 1992 .

[15]  J. G. Klincewicz,et al.  Heuristics for the p-hub location problem , 1991 .

[16]  Paul J. Densham,et al.  A more e cient heuristic for solving large p-median problems , 1992 .

[17]  Gilbert Laporte,et al.  A Tabu Search Heuristic for the Vehicle Routing Problem , 1991 .

[18]  Gerard Rushton,et al.  Strategies for Solving Large Location-Allocation Problems by Heuristic Methods , 1992 .

[19]  Fred Glover,et al.  Tabu Search - Part II , 1989, INFORMS J. Comput..

[20]  Gülay Barbarosoglu,et al.  A tabu search algorithm for the vehicle routing problem , 1999, Comput. Oper. Res..

[21]  Andreas T. Ernst,et al.  Efficient algorithms for the uncapac-itated single allocation p-hub median problem , 1996 .

[22]  Hasan Pirkul,et al.  Locating concentrators in centralized computer networks , 1992, Ann. Oper. Res..

[23]  Jadranka Skorin-Kapov,et al.  HUB NETWORK DESIGN WITH SINGLE AND MULTIPLE ALLOCATION: A COMPUTATIONAL STUDY , 1996 .

[24]  Turgut Aykin,et al.  On the Location of Hub Facilities , 1988, Transp. Sci..

[25]  C. Reeves.  Modern heuristic techniques for combinatorial problems , 1993 .

[26]  James F. Campbell,et al.  Integer programming formulations of discrete hub location problems , 1994 .

[27]  Bezalel Gavish,et al.  Topological design of telecommunication networks-local access design methods , 1991, Ann. Oper. Res..

[28]  T. Aykin.  On “a quadratic integer program for the location of interacting hub facilities” , 1990 .

[29]  Morton E. O'Kelly,et al.  Hub facility location with fixed costs , 1992 .

[30]  F. Glover,et al.  In Modern Heuristic Techniques for Combinatorial Problems , 1993 .

[31]  T. Aykin.  Lagrangian relaxation based approaches to capacitated hub-and-spoke network design problem , 1994 .