Hub location under capacity constraints

V. Rodríguez, M.J. Alvarez and L. Barcos

Transportation Research Part E: Logistics and Transportation Review, 2007, vol. 43, issue 5, 495-505

Abstract: Hub-and-spoke networks are employed in cargo transportation. This paper presents a model for hub location in these kinds of networks. Hubs are considered capacity limited. For that reason, costs due to congestion in hubs are introduced into the model. A Simulated Annealing algorithm has been developed to solve the model. The algorithm includes a balanced module, the purpose of which is to reduce congestion. Each hub is modelled as an M/M/1 queuing system. The algorithm has been tested in randomly created networks. The results show that when a situation of congestion occurs, the proposed algorithm enables better solutions to be found, thereby improving the standard of service.

Keywords: Hub; location; Cargo; distribution; Facility; planning; Simulated; annealing; Hub; capacity (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (16)

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