Capacitated multiple allocation hub location problems under the risk of interdiction: model formulations and solution approaches

Vishal Bansal (), Sachin Jayaswal and Ankur Sinha
Additional contact information
Vishal Bansal: Indian Institute of Management Calcutta
Sachin Jayaswal: Indian Institute of Management Ahmedabad
Ankur Sinha: Indian Institute of Management Ahmedabad

Annals of Operations Research, 2024, vol. 332, issue 1, No 10, 213-251

Abstract: Abstract Hub-and-spoke networks play a critical role in reducing cost and enhancing service levels in various infrastructural sectors since hubs act as the consolidation and transshipment points of the flows. The failure of hubs in such a network can cause severe disruptions. While disruptions can be natural or man-made, a disruption by a rational individual or entity can be significantly detrimental to the network and is often studied as an interdiction problem. It is important to take interdiction effects at the design stage; therefore, we study the three-level capacitated hub-and-spoke network design problem from the perspective of a defender who considers the risk of interdiction by a rational attacker. Within the three levels, the upper level represents the network design level, and the lower two levels represent the bi-level hub interdiction problem. The introduction of capacity constraints within an interdiction model dramatically increases the complexity of the problem, as there can be some unfulfilled flows post-interdiction. Moreover, a flow may or may not be fulfilled through the least-cost route using the nearest hubs. This work makes two major contributions: the first contribution is on the efficient handling of the bi-level hub interdiction problem using the Dual-based approach and the Penalty-based approach, and the second contribution is on solving the overall three-level problem using a super valid inequality. These two contributions allow us to solve large-scale versions of the capacitated multiple allocation p-median hub location problem under the risk of interdiction, which is otherwise mathematically intractable and can be handled only using complete enumeration techniques.

Keywords: Multi-level optimization; Hub-and-spoke network; Hub interdiction; Super valid inequality; Discrete hub location (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10479-023-05563-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:332:y:2024:i:1:d:10.1007_s10479-023-05563-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-023-05563-4

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().