Highlights We consider three variants of robust hub location. This study is the first to consider both uncertain demand and transportation cost. We introduce appropriate formulations and a solution algorithm. Results provide insight in the nature of robust and stochastic solutions.

    Abstract In this paper we present robust counterparts for uncapacitated hub location problems in which the level of conservatism can be controlled by means of a budget of uncertainty. We study three particular cases for which the parameters are subject to interval uncertainty: demand, transportation cost, and both simultaneously. We present mixed integer programming formulations for each of these cases and a branch-and-cut algorithm to solve the latter. We present computational results to evaluate the performance of the proposed formulations when solved with a general purpose solver and study the structure of the solutions to each of the robust counterparts. We also compare the performance between solutions obtained from a commensurable stochastic model and those from our robust counterparts in both risk neutral and worst-case settings.


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    Title :

    Robust uncapacitated hub location




    Publication date :

    2017-06-12


    Size :

    18 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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