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Many to many hub and spoke location routing problem based on the gravity rule

Khosravi, S ; Sharif University of Technology | 2018

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  1. Type of Document: Article
  2. DOI: 10.5267/j.uscm.2017.12.005
  3. Publisher: Growing Science , 2018
  4. Abstract:
  5. This paper examines the spoke and hub location decisions in a routing problem. To minimize the total cost, the study analyzes on how to locate the spokes, hubs and the allocation of spoke nodes to hub nodes, the routing among the nodes and the number of vehicles assigned to each hub thoroughly. As there might be no facility assigned to some points, unsatisfied demands must be distributed to other nodes with available facilities. Furthermore, the realized demand is determined by considering the perceived utility of each path, using The Gravity rule. For this purpose, the proposed nonlinear model is transformed into a linear programming model, where some tightening rules and preprocessing procedures are applied, and also the sequential and integrated approaches are developed to solve the problem. In the sequential method, spokes are allocated, and hubs are selected based on the location of the spokes, after which the routing in the local tour is determined. Meanwhile, in the integrated approach, the aggregated model is solved. A heuristic is presented to address the integrated model. Numerical experiments are run on both approaches, to compare both, and obtain insights from the model. © 2018 by the authors; licensee Growing Science, Canada
  6. Keywords:
  7. Competitive ; Facility location ; Gravity rule ; Hub location ; Routing
  8. Source: Uncertain Supply Chain Management ; Volume 6, Issue 4 , 2018 , Pages 393-406 ; 22916822 (ISSN)
  9. URL: http://www.growingscience.com/uscm/Vol6/uscm_2017_33.pdf