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Hub location problem considering an elastic demand

Khosravi, Sh ; Sharif University of Technology

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  1. Type of Document: Article
  2. Abstract:
  3. In most hub location problem in the literature, the demand is independent of the market share. However, especially about the services and products which are not essential, this assumption does not mirror the reality. Considering the elastic demand increases the complexity and solution of the problem. The elasticity of demand depends on the utility of available hub. For simplicity, we assume that the utility of hub nodes are additive. Utility of the nodes is based on the attraction of the facility on that node and also the decay function of distance. In this paper we propose a new model for hub location problem in an airline industry with elastic demand. In this problem, passengers use hubs on a way to their destination and the decision variable is the location of hub in order to maximize the benefit of transportation and establishing the facility in hub nodes
  4. Keywords:
  5. Decay function ; Elastic demand ; Location problem ; Air transportation ; Competition ; Manufacture ; Airline industry ; Hub and spoke network ; Decision variables ; Elastic demand ; Elasticity of demand ; Hub and spoke networks ; Hub location problems ; Location problems ; Complex networks
  6. Source: CIE 2014 - 44th International Conference on Computers and Industrial Engineering and IMSS 2014 - 9th International Symposium on Intelligent Manufacturing and Service Systems, Joint International Symposium on "The Social Impacts of Developments in Information, Manufacturing and Service Systems" - Proceedings ; 2014 , pp. 581-588
  7. URL: http://toc.proceedings.com/24604webtoc.pdf