Hub Location, Routing, and Route Dimensioning: Strategic and Tactical Intermodal Transportation Hub Network Design

Bariş Yıldız (), Hande Yaman () and Oya Ekin Karaşan ()
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Bariş Yıldız: Department of Industrial Engineering, College of Engineering, Koç University, 34450 Istanbul, Turkey
Hande Yaman: Research Centre for Operations Research and Statistics (ORSTAT), Faculty of Economics and Business, KU Leuven, 3000 Leuven, Belgium
Oya Ekin Karaşan: Department of Industrial Engineering, Bilkent University, Bilkent, 06800 Ankara, Turkey

Transportation Science, 2021, vol. 55, issue 6, 1351-1369

Abstract: We propose a novel hub location model that jointly eliminates some of the traditional assumptions on the structure of the network and on the discount as a result of economies of scale in an effort to better reflect real-world logistics and transportation systems. Our model extends the hub literature in various facets: instead of connecting nonhub nodes directly to hub nodes, we consider routes with stopovers; instead of connecting pairs of hubs directly, we design routes that can visit several hub nodes; rather than dimensioning pairwise connections, we dimension routes of vehicles; and rather than working with a homogeneous fleet, we use intermodal transportation. Decisions pertinent to strategic and tactical hub location and transportation network design are concurrently made through the proposed optimization scheme. An effective branch-and-cut algorithm is developed to solve realistically sized problem instances and to provide managerial insights.

Keywords: hub location; network design; route dimensioning; multimodal transport; next-day delivery; branch and cut (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:55:y:2021:i:6:p:1351-1369

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