1 Operations Research, Department of Management Engineering, Technical University of Denmark2 Department of Management Engineering, Technical University of Denmark
We introduce Generalized p-Hub Median Problem (GpHMP) that seeks to locate p hub nodes and install p distinct hub facilities/operators on the hubs while discount factor resulted by consolidation of flow on the hub links depends on the facilities/operators that are installed/operating on both hub nodes end-point. In contrast, in traditional hub location problems it is commonly assumed that all the hub facilities share a similar characteristic and economy of scale resulted by consolidation of flow over hub edges is not directly relevant to the hub facilities being installed at both end-points. The mathematical model is presented and numerical results on the instances of CAB and AP data sets are reported.
facility location; hub-and-spoke network design; quadratic assignment problem