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A two-stage robust hub location problem with accelerated Benders decomposition algorithm

Article dans une revue avec comité de lecture
Author
RAHMATI, Reza
119054 Shahed University [Téhéran]
BASHIRI, Mahdi
302852 Coventry University
NIKZAD, Erfaneh
119054 Shahed University [Téhéran]
SIADAT, Ali
107452 Laboratoire de Conception Fabrication Commande [LCFC]

URI
http://hdl.handle.net/10985/22200
DOI
10.1080/00207543.2021.1953179
Date
2021-09
Journal
International Journal of Production Research

Abstract

In this paper, a two-stage robust optimisation is presented for an uncapacitated hub location problem in which demand is uncertain and the level of conservatism is controlled by an uncertainty budget. In the first stage, locations for establishing hub facilities were determined, and allocation decisions were made in the second stage. An accelerated Benders decomposition algorithm was used to solve the problem. Computational experiments showed better results in terms of number of iterations and computation time for Benders decomposition with Pareto-optimal cuts in comparison with the classical Benders decomposition algorithm. According to numerical analysis, it was concluded that increasing the uncertainty budget also increased total costs for more established hubs. To determine the uncertainty budget in an appropriate manner, a new expected aggregate function was introduced. The numerical studies demonstrated the usefulness of the proposed method in defining the appropriate uncertainty budget in the presence of uncertainty.

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