Dynamic Hub Location Problems with Single Allocation and Multiple Capacity Levels

We consider a dynamic (or multi period) multi-capacity single allocation hub location problem. The ever increasing speed of changes in the cost and demand structure forces companies to reconfigure their network frequently. We contribute by developing a multi period approach that incorporates these changes and enables optimal configuration of hub location networks. Which locations serve as hubs, the capacity of these hubs and the allocation of non-hub locations to hub locations are the key decisions in each period. Several formulations of mixed integer programs for the multi period model are proposed. We compare these models in terms of computational performance and provide paths for future research.