Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections
In distribution systems such as airlines and express package delivery, the use of hub-and-spoke networks is common, and flow consolidation at hub facilities is essential for cost reduction. While a constant discount factor is typically used to model cost reduction in interhub links, this paper explo...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-12-01
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| Series: | Operations Research Perspectives |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214716023000210 |
| _version_ | 1797401747442892800 |
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| author | Raed AL Athamneh Moayad Tanash Dania Bani Hani Mustafa Rawshdeh Abdallah Alawin Zaid Albataineh |
| author_facet | Raed AL Athamneh Moayad Tanash Dania Bani Hani Mustafa Rawshdeh Abdallah Alawin Zaid Albataineh |
| author_sort | Raed AL Athamneh |
| collection | DOAJ |
| description | In distribution systems such as airlines and express package delivery, the use of hub-and-spoke networks is common, and flow consolidation at hub facilities is essential for cost reduction. While a constant discount factor is typically used to model cost reduction in interhub links, this paper explores an extension of the incomplete hub location problem with modular capacity that enables direct connections between non-hub nodes. The modified approach, called MHLPDC, aims to locate a set of hub facilities, connect each non-hub node to a hub, and activate hub facility links, access arc links, and direct links between non-hub nodes to minimize network costs. The MHLPDC integrates link activation decisions into the decision-making process and utilizes modular arc costs to model the flow dependence of transportation costs in all arcs. To solve the problem, the paper presents a mixed-integer mathematical programming formulation and heuristic algorithm based on a greedy randomized adaptive search and variable neighborhood search approach. The proposed algorithm produces high-quality solutions, as demonstrated through computational experiments on benchmark instances with up to 40 nodes. Furthermore, a sensitivity analysis of the optimal network structure indicates that increasing the discount factor, by varying hub and access arc capacities as well as the associated variable costs, results in fewer hubs being established and more direct shipments between non-hub nodes being permitted. |
| first_indexed | 2024-03-09T02:14:35Z |
| format | Article |
| id | doaj.art-505851cdf51a4ba2a99854742149a3f3 |
| institution | Directory Open Access Journal |
| issn | 2214-7160 |
| language | English |
| last_indexed | 2024-03-09T02:14:35Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Operations Research Perspectives |
| spelling | doaj.art-505851cdf51a4ba2a99854742149a3f32023-12-07T05:28:42ZengElsevierOperations Research Perspectives2214-71602023-12-0111100286Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct ConnectionsRaed AL Athamneh0Moayad Tanash1Dania Bani Hani2Mustafa Rawshdeh3Abdallah Alawin4Zaid Albataineh5Department of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, 13133, JordanDepartment of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, 13133, Jordan; Corresponding author.Hijjawi Faculty for Engineering Technology, Yarmouk University, Irbid, 21163, JordanDepartment of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, 13133, JordanDepartment of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, 13133, JordanHijjawi Faculty for Engineering Technology, Yarmouk University, Irbid, 21163, JordanIn distribution systems such as airlines and express package delivery, the use of hub-and-spoke networks is common, and flow consolidation at hub facilities is essential for cost reduction. While a constant discount factor is typically used to model cost reduction in interhub links, this paper explores an extension of the incomplete hub location problem with modular capacity that enables direct connections between non-hub nodes. The modified approach, called MHLPDC, aims to locate a set of hub facilities, connect each non-hub node to a hub, and activate hub facility links, access arc links, and direct links between non-hub nodes to minimize network costs. The MHLPDC integrates link activation decisions into the decision-making process and utilizes modular arc costs to model the flow dependence of transportation costs in all arcs. To solve the problem, the paper presents a mixed-integer mathematical programming formulation and heuristic algorithm based on a greedy randomized adaptive search and variable neighborhood search approach. The proposed algorithm produces high-quality solutions, as demonstrated through computational experiments on benchmark instances with up to 40 nodes. Furthermore, a sensitivity analysis of the optimal network structure indicates that increasing the discount factor, by varying hub and access arc capacities as well as the associated variable costs, results in fewer hubs being established and more direct shipments between non-hub nodes being permitted.http://www.sciencedirect.com/science/article/pii/S2214716023000210Hub-and-Spoke networkHub locationFlow dependent costsDirect connectionHeuristic algorithmsInteger programming |
| spellingShingle | Raed AL Athamneh Moayad Tanash Dania Bani Hani Mustafa Rawshdeh Abdallah Alawin Zaid Albataineh Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections Operations Research Perspectives Hub-and-Spoke network Hub location Flow dependent costs Direct connection Heuristic algorithms Integer programming |
| title | Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections |
| title_full | Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections |
| title_fullStr | Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections |
| title_full_unstemmed | Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections |
| title_short | Variable Neighborhood Search Algorithm for the Single Assignment Incomplete Hub Location Problem with Modular Capacities and Direct Connections |
| title_sort | variable neighborhood search algorithm for the single assignment incomplete hub location problem with modular capacities and direct connections |
| topic | Hub-and-Spoke network Hub location Flow dependent costs Direct connection Heuristic algorithms Integer programming |
| url | http://www.sciencedirect.com/science/article/pii/S2214716023000210 |
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