Title of article
Robust uncapacitated multiple allocation hub location problem under demand uncertainty: minimization of cost deviations
Author/Authors
Lozkins, Aleksejs Department of Mathematical Game Theory and Statistical Decisions - Saint Petersburg State University - 7‑9 - Universitetskaya nab - St. Petersburg, Russian Federation 199034 - Department of Mathematical optimization and Modeling - Ltd. BIA-Technologies - 94 - Moskovskiy avenue - St. Petersburg, Russian Federation 196084 , Krasilnikov, Mikhail Department of Mathematical optimization and Modeling - Ltd. BIA-Technologies - 94 - Moskovskiy avenue - St. Petersburg, Russian Federation 196084 , Bure, Vladimir Department of Mathematical Game Theory and Statistical Decisions - Saint Petersburg State University - 7‑9 - Universitetskaya nab - St. Petersburg, Russian Federation 199034
Pages
9
From page
199
To page
207
Abstract
The hub location–allocation problem under uncertainty is a real-world task arising in the areas such as public and freight transportation and telecommunication systems. In many applications, the demand is considered as inexact because of the forecasting inaccuracies or human’s unpredictability. This study addresses the robust uncapacitated multiple allocation hub location problem with a set of demand scenarios. The problem is formulated as a nonlinear stochastic optimization problem
to minimize the hub installation costs, expected transportation costs and expected absolute deviation of transportation costs.
To eliminate the nonlinearity, the equivalent linear problem is introduced. The expected absolute deviation is the robustness
measure to derive the solution close to each scenario. The robust hub location is assumed to deliver the least costs difference
across the scenarios. The number of scenarios increases size and complexity of the task. Therefore, the classical and improved
Benders decomposition algorithms are applied to achieve the best computational performance. The numerical experiment on
CAB and AP dataset presents the difference of resulting hub networks in stochastic and robust formulations. Furthermore, performance of two Benders decomposition strategies in comparison with Gurobi solver is assessed and discussed.
Keywords
Hub location problem , Stochastic programming , Absolute deviation , Robust solution , Benders decomposition , Pareto-optimal cuts
Journal title
Journal of Industrial Engineering International
Serial Year
2020
Record number
2704000
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