Title: Stochastic p-robust uncapacitated multiple allocation p-hub location problem

Authors: Ragheb Rahmaniani; Abdolsalam Ghaderi; Naman Mahmoudi; Farnaz Barzinepour

Addresses: Department of Industrial Engineering, Iran University of Science and Technology, P.C. 1684613114, Narmak, Tehran, Iran ' Department of Industrial Engineering, University of Kurdistan, Sanandaj, Iran ' Department of Industrial Engineering, Iran University of Science and Technology, P.C. 1684613114, Narmak, Tehran, Iran ' Department of Industrial Engineering, Iran University of Science and Technology, P.C. 1684613114 Narmak, Tehran, Iran

Abstract: In this paper, we are aimed to tackle the uncapacitated multiple allocation p-hub location problem under an uncertain environment. We develop the mathematical formulation of the considered problem with uncertainty in flows and distances parameters. These uncertain parameters are characterised by a given number of scenarios. The objective function of this problem minimises the expected costs, while relative regret in each scenario must be no greater than an arbitrary value known as the robustness coefficient (p ≥ 0). This kind of modelling is known as the stochastic p-robust programming model. Meanwhile, based on the variable neighbourhood search, a heuristic is proposed to solve the problem. This heuristic is tested through the Civil Aeronautics Board (CAB) data sets and the results are then compared with the CPLEX solver. Computational results from all 60 instances from CAB data set show that the algorithm is much more reliable and efficient.

Keywords: p-hub location problem; uncapacitated multiple allocation; variable neighbourhood search; stochastic p-robust programming; uncertainty; modelling; hub location.

DOI: 10.1504/IJISE.2013.054282

International Journal of Industrial and Systems Engineering, 2013 Vol.14 No.3, pp.296 - 314

Published online: 27 Dec 2013 *

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