Optimizing a Hub Arc Location Problem with Set-up Cost and Isolated Hub Nodes

Articles in Press

Document Type : Research Paper

Authors

1 Department of Industrial Engineering & Management Systems, Amirkabir University of Technology

2 School of Industrial Engineering, College of Engineering, University of Tehran

3 Department of Industrial Engineering & Management Systems, Amirkabir University of Technology

10.22059/aie.2024.372107.1888

Abstract

Efficient flow management is of utmost importance in the field of transportation and logistics. To achieve this, hub networks play a significant role. The hub arc location problem emerged as a new framework focusing on hub arcs and accommodating isolated hubs. This paper extends hub arc location problem by integrating set-up costs in the optimization process. Then, a heuristic algorithm developed that provides superior solutions for hub network design. This algorithm considers both the flow of goods and the costs associated with setting up the hubs. The study also conducted meticulous sensitivity analysis to understand the impact of strategic adjustments on the optimization process. By lowering the discount factor for inter-hub flows and increasing the number of exogenous hub arcs, the researchers were able to identify significant improvements in route optimization and cost reduction. Overall, this research challenges conventional practices in hub network design and sets the stage for further exploration of the dynamics within hub networks. By delving deeper into the intricacies of hub networks, researchers can pave the way for even greater efficiency and resource optimization in transportation and logistics. This has the potential to revolutionize the way we manage flow in transportation networks, leading to more cost-effective and sustainable solutions.

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Main Subjects

Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 26 June 2024

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