The uncapacitated hub location problem in networks under decentralized management

Publication year: 2011
Source: Computers & Operations Research, Volume 38, Issue 12, December 2011, Pages 1656-1666

Adriano D., Vasconcelos , Carlos D., Nassi , Luiz A.S., Lopes

We propose a new hub location model defined by the minimization of costs. The main contribution of this work is to permit the analysis of a hub-and-spoke network operated under “decentralized management”. In this type of network, various transport companies act independently, and each makes its route choices according to its own criteria, which can include cost, time, frequency, security and other factors, including subjective ones. Therefore, due to the diversity of the various companies’ criteria, one can expect that between each origin–destination pair, a fraction of the flow will be carried through hubs and a fraction will be carried…