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Robust intermodal hub location under polyhedral demand uncertainty
Institution:1. Departamento de Matemática-CMA, Faculdade de Ciências e Tecnologia, Universidade Nova Lisboa, Caparica 2829-516, Portugal;2. Institute of Operations Research, Karlsruhe Institute of Technology (KIT), Department of Logistics and Supply Chain Optimization, Research Center for Information Technology (FZI), Karlsruhe, Germany;3. Universidade de Lisboa, Faculdade de Ciências, Departamento de Estatística e Investigação Operacional e Centro de Matemática, Aplicações Fundamentais e Investigação Operacional, Bloco C6, Piso 4, 1749-016 Lisboa, Portugal
Abstract:In this study, we consider the robust uncapacitated multiple allocation p-hub median problem under polyhedral demand uncertainty. We model the demand uncertainty in two different ways. The hose model assumes that the only available information is the upper limit on the total flow adjacent at each node, while the hybrid model additionally imposes lower and upper bounds on each pairwise demand. We propose linear mixed integer programming formulations using a minmax criteria and devise two Benders decomposition based exact solution algorithms in order to solve large-scale problems. We report the results of our computational experiments on the effect of incorporating uncertainty and on the performance of our exact approaches.
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