Finding p-Hub Median Locations: An Empirical Study on Problems and Solution Techniques

Abstract

Hub location problems have been studied by many researchers for almost 30 years, and, accordingly, various solution methods have been proposed. In this paper, we implement and evaluate several widely used methods for solving five standard hub location problems. To assess the scalability and solution qualities of these methods, three well-known datasets are used as case studies: Turkish Postal System, Australia Post, and Civil Aeronautics Board. Classical problems in small networks can be solved efficiently using CPLEX because of their low complexity. Genetic algorithms perform well for solving three types of single allocation problems, since the problem formulations can be neatly encoded with chromosomes of reasonable size. Lagrangian relaxation is the only technique that solves reliable multiple allocation problems in large networks. We believe that our work helps other researchers to get an overview on the best solution techniques for the problems investigated in our study and also stipulates further interest on cross-comparing solution techniques for more expressive problem formulations.