Centralized Carrier Collaboration Multihub Location Problem for Less-Than-Truckload Industry

2012 ◽  
Vol 2269 (1) ◽  
pp. 20-28 ◽  
Author(s):  
Salvador Hernández ◽  
Avinash Unnikrishnan ◽  
Satyen S. Awale
Keyword(s):  
Location Problem ◽  
Network Size ◽  
Expected Profit ◽  
Third Party ◽  
Third Party Logistics ◽  
Hub Location ◽  
Hub Location Problem ◽  
Hub And Spoke ◽  
Profit Margins ◽  
Insight Into

A centralized carrier collaboration multihub location problem (CCCMLP) for the small to medium-sized less-than-truckload industry is addressed. In the CCCMLP, a central entity (e.g., a third-party logistics firm) seeks a set of collaborative consolidation transshipment hubs to establish a hybrid collaborative hub-and-spoke system that minimizes the total collaborative costs for the set of collaborating carriers. Previous studies focused on addressing the exchange of capacity without considering the location of transfer hubs and the routes that connect them. A carrier has the option either to collaborate or to ship its demand directly without collaborating. The decision depends on the expected profit margin over shipping directly while following a revenue-generating, rate-setting behavior. The CCCMLP was formulated as a variant of the P-hub location problem, which is NP-hard and solved with Lagrangian relaxation. Numerical experiments were conducted to gain insight into the performance of the CCCMLP formulation under various network sizes and numbers of hubs. The results indicate that larger expected profit margins from collaborative carriers applying revenue-generating behavior would increase the likelihood of collaboration by carriers. As the network size increases, the effect of hybrid hub location costs drops.

scholarly journals Hub location problem in round-trip service applications

2020 ◽  
Author(s):  
Omar Kemmar ◽  
Karim Bouamrane ◽  
Shahin Gelareh
Keyword(s):  
Economies Of Scale ◽  
Location Problem ◽  
Service Providers ◽  
Real Life ◽  
Mixed Integer ◽  
Neighborhood Search ◽  
Hub Location ◽  
Service Networks ◽  
Hub Location Problem ◽  
Hub And Spoke

In this paper, we introduce a new hub-and-spoke structure for service networks based on round-trips as practiced by some transport service providers. This problem is a variant of Uncapacitated Hub Location Problem wherein the spoke nodes allocated to a hub node form round-trips (cycles) starting from and ending to the hub node. This problem is motivated by two real-life practices in logistics wherein  runaway  nodes and  runaway  connections with their associated economies of scale were foreseen to increase redundancy in the network. We propose a mixed integer linear programming mathematical model with exponential number of constraints. In addition to the separation routines for separating from among exponential constraints, we propose a hyper-heuristic based on reinforcement learning and its comparable counterpart as a variable neighborhood search. Our extensive computational experiments confirm efficiency of the proposed approaches.In this paper, we introduce a new hub-and-spoke structure for service networks based on round-trips as practiced by some transport service providers. This problem is a variant of Uncapacitated Hub Location Problem wherein the spoke nodes allocated to a hub node form round-trips (cycles) starting from and ending to the hub node. This problem is motivated by two real-life practices in logistics wherein  runaway  nodes and  runaway  connections with their associated economies of scale were foreseen to increase redundancy in the network. We propose a mixed integer linear programming mathematical model with exponential number of constraints. In addition to the separation routines for separating from among exponential constraints, we propose a hyper-heuristic based on reinforcement learning and its comparable counterpart as a variable neighborhood search. Our extensive computational experiments confirm efficiency of the proposed approaches.

An Optimal Design for the Capacitated Hub Location Problem with Asymmetric Allocation

2013 ◽  
Vol 284-287 ◽  
pp. 1203-1207
Author(s):  
Ji Ung Sun
Keyword(s):  
Solution Method ◽  
Location Problem ◽  
Programming Model ◽  
Service Level ◽  
Transportation Costs ◽  
Ant Colony Optimization Algorithm ◽  
Hub Location ◽  
Hub Location Problem ◽  
Hub And Spoke ◽  
Pass Through

Hub and Spoke (H&S) network reflecting the scale economies through consolidation and a large amount of freight transportation is widely used to reduce total transportation costs. H&S network has transportation routes that go to the final delivery point pass through hub linking destination from hub linking origin. In this paper we present a 0-1 integer programming model and a solution method for the capacitated asymmetric allocation hub location problem (CAAHLP). We determine the number of hubs, the locations of hubs, and asymmetric allocation of non-hub nodes to hub with the objective of minimum total transportation costs satisfying the required service level. As the CAAHLP has impractically demanding for the large sized problem, we develop a solution method based on ant colony optimization algorithm. We investigate performance of the proposed solution method through the comparative study. The experimental results show that the newly proposed asymmetrically allocated network can provide better solution than the singly allocated network in terms of cost and service level.

scholarly journals A leader-follower single allocation hub location problem under fixed markups

Filomat ◽  
2020 ◽  
Vol 34 (8) ◽  
pp. 2463-2484
Author(s):  
Dimitrije Cvokic
Keyword(s):  
Location Problem ◽  
State Of The Art ◽  
Mixed Integer ◽  
Hub Location ◽  
Hub Location Problem ◽  
Hub And Spoke ◽  
Solution Approach ◽  
Feasible Solutions ◽  
S Model ◽  
Robust Variant

This study examines a scenario in which two competitors, called a leader and a follower, sequentially create their hub and spoke networks to maximize their profits. It is assumed that a non-hub node can be allocated to at most one hub. The pricing is regulated with a fixed markup. Demand is split according to the logit model, and customers patronize their choice of route by a price. Two variants of this Stackelberg competition are addressed: deterministic and robust. In both cases, it was shown how to present the problem as a bi-level mixed-integer non-linear program. When it comes to the deterministic variant, a mixed-integer linear reformulation of the follower?s model is given. For the robust variant, it is shown how to reformulate the follower?s program as a mixed-integer conic-quadratic one. The benefits of these reformulations are that they allow the usage of state-of-the-art solvers in finding feasible solutions. As a solution approach for the leader, an alternating heuristic is proposed. Computational experiments are conducted on the set of Cinstances and thoroughly discussed, providing some managerial insights.

scholarly journals Location of regional and international hub ports in liner shipping

2017 ◽  
Vol 2 (2) ◽  
pp. 114-125 ◽  
Author(s):  
Jianfeng Zheng ◽  
Cong Fu ◽  
Haibo Kuang
Keyword(s):  
Design Methodology ◽  
Location Problem ◽  
Programming Model ◽  
Liner Shipping ◽  
Mixed Integer ◽  
Eastern Asia ◽  
Hub Location ◽  
Hub Location Problem ◽  
Content Type ◽  
Western Asia

Purpose This paper aims to investigate the location of regional and international hub ports in liner shipping by proposing a hierarchical hub location problem. Design/methodology/approach This paper develops a mixed-integer linear programming model for the authors’ proposed problem. Numerical experiments based on a realistic Asia-Europe-Oceania liner shipping network are carried out to account for the effectiveness of this model. Findings The results show that one international hub port (i.e. Rotterdam) and one regional hub port (i.e. Zeebrugge) are opened in Europe. Two international hub ports (i.e. Sokhna and Salalah) are located in Western Asia, where no regional hub port is established. One international hub port (i.e. Colombo) and one regional hub port (i.e. Cochin) are opened in Southern Asia. One international hub port (i.e. Singapore) and one regional hub port (i.e. Jakarta) are opened in Southeastern Asia and Australia. Three international hub ports (i.e. Hong Kong, Shanghai and Yokohama) and two regional hub ports (i.e. Qingdao and Kwangyang) are opened in Eastern Asia. Originality/value This paper proposes a hierarchical hub location problem, in which the authors distinguish between regional and international hub ports in liner shipping. Moreover, scale economies in ship size are considered. Furthermore, the proposed problem introduces the main ports.

Hybrid ant colony optimization for capacitated multiple-allocation cluster hub location problem

2017 ◽  
Vol 32 (1) ◽  
pp. 44-58 ◽  
Author(s):  
Mohammad Mirabi ◽  
Parya Seddighi
Keyword(s):  
Ant Colony Optimization ◽  
Location Problem ◽  
Demand Management ◽  
Telecommunication Networks ◽  
Ant Colony ◽  
Hub Location ◽  
Hub Location Problem ◽  
Total Cost ◽  
Wide Range ◽  
Cost Of Transportation

AbstractThe hub location problems involve locating facilities and designing hub networks to minimize the total cost of transportation (as a function of distance) between hubs, establishing facilities and demand management. In this paper, we consider the capacitated cluster hub location problem because of its wide range of applications in real-world cases, especially in transportation and telecommunication networks. In this regard, a mathematical model is presented to address this problem under capacity constraints imposed on hubs and transportation lines. Then, a new hybrid algorithm based on simulated annealing and ant colony optimization is proposed to solve the presented problem. Finally, the computational experiments demonstrate that the proposed heuristic algorithm is both effective and efficient.

Hierarchical hub location problem for freight network design

2018 ◽  
Vol 12 (9) ◽  
pp. 1062-1070 ◽  
Author(s):  
Jaemin Hwang ◽  
Jin Su Lee ◽  
Seung-Young Kho ◽  
Dong-Kyu Kim
Keyword(s):  
Network Design ◽  
Location Problem ◽  
Hub Location ◽  
Hub Location Problem

scholarly journals Location of Urban Logistic Terminals as Hub Location Problem

1970 ◽  
Vol 24 (5) ◽  
pp. 433-440 ◽  
Author(s):  
Jasmina Pašagić Škrinjar ◽  
Kristijan Rogić ◽  
Ratko Stanković
Keyword(s):  
Location Problem ◽  
Location Problems ◽  
Heuristic Methods ◽  
Hub Location ◽  
Hub Location Problem ◽  
Telecommunication Systems ◽  
Big Cities ◽  
Np Problems ◽  
Delivery Networks ◽  
Single Allocation

In this paper the problems of locating urban logistic terminals are studied as hub location problems that due to a large number of potential nodes in big cities belong to hard non-polynomial problems, the so-called NP-problems. The hub location problems have found wide application in physical planning of transport and telecommunication systems, especially systems of fast delivery, networks of logistic and distribution centres and cargo traffic terminals of the big cities, etc. The paper defines single and multiple allocations and studies the numerical examples. The capacitated single allocation hub location problems have been studied, with the provision of a mathematical model of selecting the location for the hubs on the network. The paper also presents the differences in the possibilities of implementing the exact and heuristic methods to solve the actual location problems of big dimensions i.e. hub problems of the big cities.

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