Stochastic uncapacitated hub location

Ivan Contreras, Jean-François Cordeau and Gilbert Laporte

European Journal of Operational Research, 2011, vol. 212, issue 3, 518-528

Abstract: We study stochastic uncapacitated hub location problems in which uncertainty is associated to demands and transportation costs. We show that the stochastic problems with uncertain demands or dependent transportation costs are equivalent to their associated deterministic expected value problem (EVP), in which random variables are replaced by their expectations. In the case of uncertain independent transportation costs, the corresponding stochastic problem is not equivalent to its EVP and specific solution methods need to be developed. We describe a Monte-Carlo simulation-based algorithm that integrates a sample average approximation scheme with a Benders decomposition algorithm to solve problems having stochastic independent transportation costs. Numerical results on a set of instances with up to 50 nodes are reported.

Keywords: Hub; location; Stochastic; programming; Monte-Carlo; sampling; Benders; decomposition (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (60)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:212:y:2011:i:3:p:518-528

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