Hub location problem with balanced round-trip flows on hub links

Abstract

This paper addresses the classical single and multiple allocation hub location problems with fully interconnected hubs, in which the balanced round-trip flows on hub links are considered in the strategic decision making process. The use of balanced round-trip flows on hub links is motivated by the need to decrease the empty-trip rate of vehicles and increase the full-load rate of vehicles. Mixed-integer programming models are presented for single and multiple allocation versions of the problems. Numerical experiments with the CAB and AP datasets are performed to analyse the impacts of balanced flows on the network configurations and the utilisation of service resources. Experimental results show that the number of located hubs tends to decrease with a decrease in the allowable unbalanced round-trip degree of the hub link flows. The utilisation rate of transportation resources can be significantly improved with a small increase in the traditional operating cost. Moreover, a better modelling of economies of scale can be achieved when considering balanced flows. [Received: 22 September 2019; Accepted: 15 March 2020]