A Combined Meta-Heuristic Approach to Optimize a Hub and Spoke Network Design Problem

Ji Ung Sun

Keywords

Hub and Spoke Network, Asymmetric Allocation, Combined Meta-Heuristic

Abstract

In this paper we deal with a capacitated asymmetric allocation hub location problem (CAAHLP). We determine the number of hubs, the locations of hubs, and asymmetric allocation of non-hub nodes to hub with the objective of minimum total transportation costs satisfying the required service level. To solve the problem optimally, we present a 0-1 integer programming model and find an optimal solution by using CPLEX. As the CAAHLP has impractically demanding for the large-sized problem, a solution method based on combined ant colony optimization algorithm and genetic algorithm is developed which solve hub location problem and node allocation problem respectively. We investigate performance of the proposed solution method through the comparative study. The experimental results show that the newly proposed asymmetrically allocated network can provide better solution than the singly allocated network in terms of cost and service level.

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