Abstract Many of air cargo companies adapt the hub-and-spokes system where economies of scale exist in the transportation cost. In this paper, we formulate economies of scale using nonlinear cost function of distances and demands, and analyze how the change of the transportation cost affects single hub location of air cargo using the generalized Weber problem on the regular demand points of one...

Abstract One of the basic assumptions in hub covering problems is considering the covering radius as an exogenous parameter which cannot be controlled by the decision maker. Practically and in many real world cases with a negligible increase in costs, to increase the covering radii, it is possible to save the costs of establishing additional hub nodes. Change in problem parameters during the pl...

This study presents a capacitated multi-facility location-allocation problem with stochastic demands based on a well-known distribution function. In this discrete environment, besides the capacitated facilities, we can employee the capacitated sub-source of each facility for satisfying demands of customers. The objective function is to find the optimal locations of facilities among a finite num...

We consider coordination among stocking locations through replenishment strategies that explicitly take into account lateral transshipments, i.e., transfer of a product among locations at the same echelon level. Our basic contribution is the incorporation of supply capacity into the traditional transshipment model. Our goal is to analyze the impact on system behavior and on stocking locations’ ...

This paper considers the discrete two-hub location problem. We need to choose two hubs from a set of nodes. The remaining nodes are to be connected to one of the two hubs which act as switching points for intemodal flows. A configuration which minimizes the total flow cost needs to be found. We show that the problem can be solved in polynomial dme when the hub locations are fixed. Since there a...