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      Efficient simulated annealing based solution approaches to the competitive single and multiple allocation hub location problems

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      Author
      Ghaffarinasab, N.
      Motallebzadeh, A.
      Jabarzadeh, Y.
      Kara, B. Y.
      Date
      2018
      Source Title
      Computers and Operations Research
      Print ISSN
      0305-0548
      Publisher
      Elsevier
      Volume
      90
      Pages
      173 - 192
      Language
      English
      Type
      Article
      Item Usage Stats
      110
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      3
      downloads
      Abstract
      Hub location problems (HLPs) constitute an important class of problems in logistics with numerous applications in passenger/cargo transportation, postal services, telecommunications, etc. This paper addresses the competitive single and multiple allocation HLPs where the market is assumed to be a duopoly. Two firms (decision makers) sequentially decide on the configuration of their hub networks trying to maximize their own market shares. The customers choose one firm based on the cost of service provided by these firms. Mathematical formulations are presented for the problems of the first and second firms (the leader and the follower, respectively) and Simulated Annealing (SA) based solution algorithms are proposed for solving these problems both in single and multiple allocation settings. Extensive computational experiments show the capability of the proposed solution algorithms to obtain the optimal solutions in short computational times. Some managerial insights are also derived based on the obtained results.
      Keywords
      Hub location
      Market competition
      Mathematical formulation
      Simulated annealing
      Permalink
      http://hdl.handle.net/11693/49852
      Published Version (Please cite this version)
      https://doi.org/10.1016/j.cor.2017.09.022
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      • Department of Industrial Engineering 677
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