Exact computational approaches to a stochastic uncapacitated single allocation p-hub center problem

These papers are produced by Cambridge Judge Business School, University of Cambridge. They are circulated for discussion purposes only. Their contents should be considered preliminary and are not to be quoted without the authors' permission. The stochastic uncapacitated single allocation p-hub center problem is an extension of the deter-ministic version which aims to minimize the longest origin-destination path in a hub and spoke network. Considering the stochastic nature of travel times on links is important when designing a network to guarantee the quality of service measured by a maximum delivery time for a proportion of all deliveries. We propose an efficient reformulation for a stochastic p-hub center problem and develop exact solution approaches based on cutting planes and Benders' decomposition. We report numerical results to show effectiveness of our new reformulations and approaches by finding global solutions of small-medium sized problems.