Hub location under competition
Mahmutogullari, A. I.
Kara, B. Y.
European Journal of Operational Research
214 - 225
Item Usage Stats
MetadataShow full item record
Hubs are consolidation and dissemination points in many-to-many flow networks. Hub location problem is to locate hubs among available nodes and allocate non-hub nodes to these hubs. The mainstream hub location studies focus on optimal decisions of one decision-maker with respect to some objective(s) even though the markets that benefit hubbing are oligopolies. Therefore, in this paper, we propose a competitive hub location problem where the market is assumed to be a duopoly. Two decision-makers (or firms) sequentially decide locations of their hubs and then customers choose one firm with respect to provided service levels. Each decision-maker aims to maximize his/her own market share. We propose two problems for the leader (former decision-maker) and follower (latter decision-maker): (r|Xp)hub − medianoid and (r|p)hub − centroid problems, respectively. Both problems are proven to be NP-complete. Linear programming models are presented for these problems as well as exact solution algorithms for the (r|p)hub − centroid problem. The performance of models and algorithms are tested by computational analysis conducted on CAB and TR data sets.
Hub location problems
Linear programming models
Models and algorithms
Published Version (Please cite this version)http://dx.doi.org/10.1016/j.ejor.2015.09.008
Showing items related by title, author, creator and subject.
Yilmaz, Emre; Elbaşı, Sanem; Ferhatosmanoğlu, Hakan (ACM, 2017-08)Deriving meaningful insights from location data helps businesses make better decisions. One critical decision made by a business is choosing a location for its new facility. Optimal location queries ask for a location to ...
Calik, H.; Tansel, B. C. (Elsevier, 2013)We give a review of existing methods for solving the absolute and vertex restricted p-center problems on networks and propose a new integer programming formulation, a tightened version of this formulation and a new method ...
Ilkhechi, A. R.; Korpeoglu, I.; Güdükbay U.; Ulusoy, Özgür (Academic Press, 2017)Location service is an essential prerequisite for mobile wireless ad hoc networks (MANETs) in which the underlying routing protocol leverages physical location information of sender and receiver nodes. Fulfillment of this ...