Spatial Analysis of Single Allocation Hub Location Problems

Meltem Peker, Bahar Y. Kara (), James F. Campbell and Sibel A. Alumur
Additional contact information
Meltem Peker: Bilkent University
Bahar Y. Kara: Bilkent University
James F. Campbell: University of Missouri-St. Louis
Sibel A. Alumur: University of Waterloo

Networks and Spatial Economics, 2016, vol. 16, issue 4, No 5, 1075-1101

Abstract: Abstract Hubs are special facilities that serve as switching, transshipment and sorting nodes in many-to-many distribution systems. Flow is consolidated at hubs to exploit economies of scale and to reduce transportation costs between hubs. In this article, we first identify general features of optimal hub locations for single allocation hub location problems based on only the fundamental problem data (demand for travel and spatial locations). We then exploit this knowledge to develop a straightforward heuristic methodology based on spatial proximity of nodes, dispersion and measures of node importance to delineate subsets of nodes likely to contain optimal hubs. We then develop constraints for these subsets for use in mathematical programming formulations to solve hub location problems. Our methodology can also help narrow an organization’s focus to concentrate on more detailed and qualitative analyses of promising potential hub locations. Results document the value of including both demand magnitude and centrality in measuring node importance and the relevant tradeoffs in solution quality and time.

Keywords: Hub location problem; Single allocation; Spatial distribution; Clustering nodes (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:netspa:v:16:y:2016:i:4:d:10.1007_s11067-015-9311-9

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DOI: 10.1007/s11067-015-9311-9

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