Location of hubs in a competitive environment |
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| Institution: | 1. ESSEC Business School, 3 Av. Bernard Hirsch, B.P. 50105, Cergy Pontoise Cedex 95021, France;2. Faculty of Engineering and Sciences, Universidad Adolfo Ibáñez, Avda. Diagonal Las Torres 2640, Peñalolen 7941169, Santiago, Chile;1. Department of Management Sciences, University of Waterloo, Waterloo, Ontario, Canada;2. Institute for Operations Research, Karlsruhe Institute of Technology (KIT), Karlsruhe, Germany;3. Forschungszentrum Informatik (FZI), Karlsruhe, Germany;4. DEIO-CIO, Faculdade de Ciências, Universidade de Lisboa, Lisbon, Portugal;1. ORLab, Faculty of Computer Science, Phenikaa University, Yen Nghia, Ha Dong, Hanoi, VietNam;2. School of Computing and Information Systems, Singapore Management University, 80 Stamford Rd, Singapore 178902, Singapore;1. Singapore-MIT Alliance for Research and Technology (SMART), 1 Create Way, Singapore;2. Canada Excellence Research Chair in “Data Science for Real-time Decision-making”, Department of Mathematics and Industrial Engineering - École Polytechnique de Montréal, Pavillon André Aisenstadt, 2920 Chemin de la Tour, Montréal, Canada |
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| Abstract: | We offer a formulation that locates hubs on a network in a competitive environment; that is, customer capture is sought, which happens whenever the location of a new hub results in a reduction of the current cost (time, distance) needed by the traffic that goes from the specified origin to the specified destination. The formulation presented here reduces the number of variables and constraints as compared to existing covering models. This model is suited for both air passenger and cargo transportation. In this model, each origin–destination flow can go through either one or two hubs, and each demand point can be assigned to more than a hub, depending on the different destinations of its traffic. Links (“spokes”) have no capacity limit. Computational experience is provided. |
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