Spatial analysis of single allocation hub location problems
Date
2016Source Title
Networks and Spatial Economics
Print ISSN
1566-113X
Electronic ISSN
1572-9427
Publisher
Springer
Volume
16
Issue
4
Pages
1075 - 1101
Language
English
Type
ArticleItem Usage Stats
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627
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Abstract
Hubs are special facilities that serve as switching, transshipment and sorting nodes in many-to-many distribution systems. Flow is consolidated at hubs to exploit economies of scale and to reduce transportation costs between hubs. In this article, we first identify general features of optimal hub locations for single allocation hub location problems based on only the fundamental problem data (demand for travel and spatial locations). We then exploit this knowledge to develop a straightforward heuristic methodology based on spatial proximity of nodes, dispersion and measures of node importance to delineate subsets of nodes likely to contain optimal hubs. We then develop constraints for these subsets for use in mathematical programming formulations to solve hub location problems. Our methodology can also help narrow an organization’s focus to concentrate on more detailed and qualitative analyses of promising potential hub locations. Results document the value of including both demand magnitude and centrality in measuring node importance and the relevant tradeoffs in solution quality and time.
Keywords
Clustering nodesHub location problem
Single allocation
Spatial distribution
Economics
Heuristic methods
Location
Mathematical programming
Optimization
Site selection
Spatial distribution
Clustering nodes
Economies of scale
Hub location problems
Many-to-many distribution systems
Qualitative analysis
Single allocation
Spatial proximity
Transportation cost
Problem solving