Robust uncapacitated hub location

Carlos Armando Zetina, Ivan Contreras, Jean-François Cordeau and Ehsan Nikbakhsh

Transportation Research Part B: Methodological, 2017, vol. 106, issue C, 393-410

Abstract: In this paper we present robust counterparts for uncapacitated hub location problems in which the level of conservatism can be controlled by means of a budget of uncertainty. We study three particular cases for which the parameters are subject to interval uncertainty: demand, transportation cost, and both simultaneously. We present mixed integer programming formulations for each of these cases and a branch-and-cut algorithm to solve the latter. We present computational results to evaluate the performance of the proposed formulations when solved with a general purpose solver and study the structure of the solutions to each of the robust counterparts. We also compare the performance between solutions obtained from a commensurable stochastic model and those from our robust counterparts in both risk neutral and worst-case settings.

Keywords: Hub location; Robust discrete optimization; Budget of uncertainty (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (27)

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DOI: 10.1016/j.trb.2017.06.008

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