Hub network design problems with profits

•New class of hub network design problems with profit-oriented objectives.•Potential applications in the design of air and ground transportation networks.•Simultaneous optimization of collected profit, setup cost of hub network and transportation cost.•Alternative models and integer programming form...

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Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Vol. 96; pp. 40 - 59
Main Authors: Alibeyg, Armaghan, Contreras, Ivan, Fernández, Elena
Format: Journal Article Publication
Language:English
Published: Elsevier India Pvt Ltd 01.12.2016
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ISSN:1366-5545, 1878-5794
Online Access:Get full text
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Summary:•New class of hub network design problems with profit-oriented objectives.•Potential applications in the design of air and ground transportation networks.•Simultaneous optimization of collected profit, setup cost of hub network and transportation cost.•Alternative models and integer programming formulations proposed and analyzed.•Results from computational tests highlight the superiority for these models for decision-making. This paper presents a class of hub network design problems with profit-oriented objectives, which extend several families of classical hub location problems. Potential applications arise in the design of air and ground transportation networks. These problems include decisions on the origin/destination nodes that will be served as well as the activation of different types of edges, and consider the simultaneous optimization of the collected profit, setup cost of the hub network and transportation cost. Alternative models and integer programming formulations are proposed and analyzed. Results from computational experiments show the complexity of such models and highlight their superiority for decision-making.
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ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2016.09.008