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Articol Retele Hub and Spoke

This document discusses single and multiple allocation in hub-and-spoke networks. It introduces hub-and-spoke networks, which involve transporting goods from origins to destinations through one or two hub transshipment facilities. The paper examines two types of hub networks: single allocation, where each node is connected to only one hub; and multiple allocation, where nodes can connect to multiple hubs. It develops mathematical models to calculate total costs for each network type and compares the costs between single and multiple allocation models. The results show that when discount factors for inter-hub transport are small, it is more cost-effective to allow multiple allocations through additional collection/distribution links than to increase the number of hubs.

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213 views

Articol Retele Hub and Spoke

This document discusses single and multiple allocation in hub-and-spoke networks. It introduces hub-and-spoke networks, which involve transporting goods from origins to destinations through one or two hub transshipment facilities. The paper examines two types of hub networks: single allocation, where each node is connected to only one hub; and multiple allocation, where nodes can connect to multiple hubs. It develops mathematical models to calculate total costs for each network type and compares the costs between single and multiple allocation models. The results show that when discount factors for inter-hub transport are small, it is more cost-effective to allow multiple allocations through additional collection/distribution links than to increase the number of hubs.

Uploaded by

Tivig Pantelimon-teodor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 2

SINGLE AND MULTIPLE ALLOCATION IN HUB-AND-SPOKE

NETWORKS
Author1 Carmen Simona VASILE , UPB - Facultatea de Transporturi,Romania
Author2 Serban RAICU, UPB - Facultatea de Transporturi,Romania
Keywords :Hub-and-Spoke, location, single allocation, multiple allocation

Introduction
Hub-and-Spoke networks are used in various types of network systems (e.g. freight
railway transportation, airline transportation, postal delivery systems, and
telecommunication).Their principle can be described as follows: There exist many origins,
many destinations and a number of hubs (i.e. transshipment facilities in case of transport
systems)[1].All the transport flow must travel from an origin to a destination via either one or
two hubs.
The hub location problem involves two decisions: locating hubs and assigning non-hub
nodes to hubs. The flow is then concentrated on the inter-hub links and it brings transportation
economies of scale (expressed by a discount factor). There exist several types of Hub-andSpoke network. This article deals with two of them: the single allocation and the multiple
allocation Hub-and-Spoke networks. Both types are considered to be uncapacitated and with
given number of hubs. We calculated and compared the total cost for both types of networks.
The study has these goals:
- to show the cost difference between multiple allocation and single;
- to exemplify the impact of discount factor on solution of hub location problems;
Experimental
Single assignment means that each node can only be connected to one hub and inversely,
whereas multiple assignments allow each node to be connected to more than one hub.
Hub arcs provide reduced cost transportation between two hubs (usually with larger vehicles)
and we have the following relations .
Cost: i k m j :
Cijkm = cik + ckm + cmj
(1)
Hub nodes provide: sorting, switching, connection and consolidation/break-bulk to access
reduced cost hub arcs.( Fig.nr.1)
Given: Network G=(V,E),set of origin-destination flows, Wij ,discount factor for hub arcs,
0<<1.Design a minimum cost network with hub nodes and hub arcs to satisfy demand Wij.[2]
Single allocation:Zik= 1 if node i is allocated to a hub at k ;0 otherwise
Zkk= 1 if node k is a hub; 0 otherwise

Figure nr.1 Single allocation and multiple allocation Hub and spoke network

Results and Discussions


Single Allocation [2]
(2)
Multiple allocation : 4 subscripted pathvariables [3] - Serve all o-d flows
Xijkm= fraction of flow that travels i-k-m-j
- use p hubs
(4)

(3)
(4)

- Link flows and hubs

Hk = 1 if node k is a hub; 0 otherwise


Cost: i k m j : Cijkm = cik + ckm + cmj
Min

(6)

(7)
-serve all o-d flows

-use p hubs

(8)
(9)

-link flows &hub

Conclusions
If the discount on inter-hub links is small, it is better to allow multiple assignments (it means
to add collection / distribution links) than to increase the number of hubs.
Acknowledgement
The work has been funded by the Sectoral Operational Programme Human Resources
Development 2007-2013 of the Ministry of European Founds through the Financial
Agreement
POSDRU 187/1.5/S/155536.
References
1. Jaromr Siroky, Miroslav Slivone,Vclav Cempire , Single and multiple allocation in
hub and spoke networks and the transportation cost comparison , Reen problmu
lokace hubu pomoc genetickho algoritmu, Perners Contacts 4, 2011, pp 1-20
2. M. OKelly A quadratic integer program for the location of interacting hub facilities.
European Journal of Operational Research 32, 1987,393-404
3. James Campbell ,Hub Location & Hub Network Design, HEC Montreal, 2010 ,pp 140

(10)

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