A Hybrid Solution Method for Hub-and-Spoke Network Design under Uncertainty A Case Study to Design Optical Fiber Network in Iran

Document Type : Research Article

Authors

1 Faculty Of Industrial Engineering, K.N.Toosi University Of Technology, Tehran, Iran,

2 Faculty of Industrial engineering, Department of Industrial Engineering‎, K.N.Toosi University of Technology

3 Industrial engineering Ph.D. Student, Department of Industrial Engineering & Management Systems‎, Amirkabir University of Technology (Tehran Plytechnic)

4 Financial engineering MSc Student, Department of Industrial Engineering‎, K.N.Toosi University of Technology, Tehran, Iran

Abstract

Supply chain is an integrated system of facilities and activities. Gaining the optimum design of demand satisfaction network is one of the most important live issues in the decision making problems category. Most of previous studies considered unreal assumptions such as the lack of capacity constraints to satisfy demand in the network and in hubs. By considering the nature of the case that have been studied in this research, the assumption of unlimited capacity to satisfy the demand is justified. Another common assumption in hub location problems is the lack of direct connection between the nodes. In this research and in real world problems would be seen that the direct link between the nodes can be effective in reducing system costs and increase the efficiency of the network. The other innovations of current research is considering uncertain nature of the demand data, oscillation and changes in costs anticipation and actual hub establishing costs, fuzzy numbers are used to represent these values. Problem modeling is held in a fuzzy state and a hybrid method is represented to solve the problem. At first, defuzzification of the model is taken place. Afterwards, all possible answers are considered with the help of the Genetic Algorithm. At last, the optimum case were chosen by using VIKOR ranking method. Calculation results for the designing of optical fiber network between cities are showing good and acceptable performance of the proposed method in an acceptable solving time

Keywords

dor 20.1001.1.25882953.2019.51.2.10.1

Main Subjects


1.         An, Y., Y. Zhang, and B. Zeng, The reliable hub-and-spoke design problem: Models and algorithms. Transportation Research Part B: Methodological, 77: p. 103-122. (2015).
2.         Çiftçi, M.E. and M. Şevkli, A new hub and spoke system proposal: A case study for Turkey's aviation industry. Journal of Air Transport Management, 47: p. 190-198. (2015).
3.         Bryan DL, O.K.M., Hub-and-spoke networks in air transportation: an analytical review. Journal of Regional Science, 39(2): p. 275-295. (1999).
4.         Marianov, V. and D. Serra, Location models for airline hubs behaving as M/D/c queues. Computers & Operations Research, 30(7): p. 983-1003. (2003).
5.         Martı́n, J.C. and C. Román, Analyzing competition for hub location in intercontinental aviation markets. Transportation Research Part E: Logistics and Transportation Review, 2004. 40(2): p. 135-150.
6.         Sasaki, M., A. Suzuki, and Z. Drezner, On the selection of hub airports for an airline hub-and-spoke system. Computers & Operations Research, 1999. 26(14): p. 1411-1422.
7.         Cunha, C.B. and M.R. Silva, A genetic algorithm for the problem of configuring a hub-and-spoke network for a LTL trucking company in Brazil. European Journal of Operational Research, 2007. 179(3): p. 747-758.
8.         Intermediate Facilities in Freight Transportation Planning: A Survey. Transportation Science, 2016.
9.         Jeong, S.-J., C.-G. Lee, and J.H. Bookbinder, The European freight railway system as a hub-and-spoke network. Transportation Research Part A: Policy and Practice, 2007. 41(6): p. 523-536.
10.       Nickel, S., A. Schöbel, and T. Sonneborn, Hub Location Problems in Urban Traffic Networks, in Mathematical Methods on Optimization in Transportation Systems, M. Pursula and J. Niittymäki, Editors. 2001, Springer US: Boston, MA. p. 95-107.
11.       Ernst, A.T. and M. Krishnamoorthy, Hub LocationEfficient algorithms for the uncapacitated single allocation p-hub median problem. Location Science, 1996. 4(3): p. 139-154.
12.       Çetiner, S., C. Sepil, and H. Süral, Hubbing and routing in postal delivery systems. Annals of Operations Research, 2010. 181(1): p. 109-124.
13.       Kuby, M.J. and R.G. Gray, The hub network design problem with stopovers and feeders: The case of Federal Express. Transportation Research Part A: Policy and Practice, 1993. 27(1): p. 1-12.
14.       Yaman, H., B.Y. Kara, and B.Ç. Tansel, The latest arrival hub location problem for cargo delivery systems with stopovers. Transportation Research Part B: Methodological, 2007. 41(8): p. 906-919.
15.       Alumur, S. and Y.B. Kara, A hub covering network design problem for cargo applications in Turkey. Journal of the Operational Research Society, 2009. 60(10): p. 1349-1359.
16.       Carello G, D.C.F., Ghirardi M, Tadei R, Solving the hub location problem in telecommunication network design: a local search approach. Networks, 2004. 44: p. 94-105.
17.       Lapierre, S.D., A.B. Ruiz, and P. Soriano, Designing Distribution Networks: Formulations and Solution Heuristic. Transportation Science, 2004. 38(2): p. 174-187.
18.       Yoon, M.-G. and J. Current, The hub location and network design problem with fixed and variable arc costs: formulation and dual-based solution heuristic. Journal of the Operational Research Society, 2008. 59(1): p. 80-89.
19.       Azizi, N., et al., The impact of hub failure in hub-and-spoke networks: Mathematical formulations and solution techniques. Computers & Operations Research, 2016. 65: p. 174-188.
20.       O'Kelly, M.E., A quadratic integer program for the location of interacting hub facilities. European Journal of Operational Research, 1987. 32(3): p. 393-404.
21.       ME, O.K., The location of interacting hub facilities. Transp Sci, 1986. 20: p. 92-105.
22.       Yaman, H. and S. Elloumi, Star p-hub center problem and star p-hub median problem with bounded path lengths. Comput. Oper. Res., 2012. 39(11): p. 2725-2732.
23.       Aykin, T., Networking Policies for Hub-and-Spoke Systems with Application to the Air Transportation System. Transportation Science, 1995. 29(3): p. 201-221.
24.       Campbell, J.F., Hub Location and the p-Hub Median Problem. Oper. Res., 1996. 44(6): p. 923-935.
25.       Yaman, H., Allocation strategies in hub networks. European Journal of Operational Research, 2011. 211(3): p. 442-451.
26.       Aykin, T., Lagrangian relaxation based approaches to capacitated hub-and-spoke network design problem. European Journal of Operational Research, 1994. 79(3): p. 501-523.
27.       Alumur, S. and B.Y. Kara, Network hub location problems: The state of the art. European Journal of Operational Research, 2008. 190(1): p. 1-21.
28.       Setak, M., Karimi, H., and Rastani, S., Designing  Incomplete  Hub  Location-routing Network  in  Urban  Transportation Proble m,. IJE TRANSACTIONS C: Aspects  2013. 26(9): p. 997-1006.
29.       Lee, J.-H. and I. Moon, A hybrid hub-and-spoke postal logistics network with realistic restrictions: A case study of Korea Post. Expert Systems with Applications, 2014. 41(11): p. 5509-5519.
30.       Zheng, J., Q. Meng, and Z. Sun, Liner hub-and-spoke shipping network design. Transportation Research Part E: Logistics and Transportation Review, 2015. 75: p. 32-48.
31.       Rahimi, Y., et al., Multi-objective hub network design under uncertainty considering congestion: An M/M/c/K queue system. Applied Mathematical Modelling, 2016. 40(5–6): p. 4179-4198.
32.       Yang, T.-H., Stochastic air freight hub location and flight routes planning. Applied Mathematical Modelling, 2009. 33(12): p. 4424-4430.
33.       Sim, T., T.J. Lowe, and B.W. Thomas, The stochastic -hub center problem with service-level constraints. Computers & Operations Research, 2009. 36(12): p. 3166-3177.
34.       Contreras, I., J.-F. Cordeau, and G. Laporte, Stochastic uncapacitated hub location. European Journal of Operational Research, 2011. 212(3): p. 518-528.
35.       Mohammadi, M., et al., Design of a reliable logistics network with hub disruption under uncertainty. Applied Mathematical Modelling, 2016. 40(9–10): p. 5621-5642.
36.       Farahani, R.Z., et al., Hub location problems: A review of models, classification, solution techniques, and applications. Computers & Industrial Engineering, 2013. 64(4): p. 1096-1109.
37.       Taleizadeh, A.A., S.T.A. Niaki, and M.-B. Aryanezhad, A hybrid method of Pareto, TOPSIS and genetic algorithm to optimize multi-product multi-constraint inventory control systems with random fuzzy replenishments. Mathematical and Computer Modelling, 2009. 49(5–6): p. 1044-1057.
38.       Reddy, M.J. and D.N. Kumar, Optimal Reservoir Operation Using Multi-Objective Evolutionary Algorithm. Water Resources Management, 2006. 20(6): p. 861-878.
39.       Deb, K., Multi-objective Optimisation Using Evolutionary Algorithms: An Introduction, in Multi-objective Evolutionary Optimisation for Product Design and Manufacturing, L. Wang, C.A.H. Ng, and K. Deb, Editors. 2011, Springer London: London. p. 3-34.
40.       Opricovic, S., Multicriteria optimization of civil engineering systems. Faculty of Civil Engineering, Belgrade, 1998. 2: p. 5-21.
41.       Opricovic, S. and G.H. Tzeng, Multicriteria Planning of Post-Earthquake Sustainable Reconstruction. Computer-Aided Civil and Infrastructure Engineering, 2002. 17(3): p. 211-220.