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A Design of Capacitated Hub-and-Spoke Networks with Direct Shipment: Evolutionary Algorithm based Approach  

Lee, Hyun Soo (Department of Industrial Engineering, Chonnam National University)
Shin, Kyoung Seok (Department of Industrial Engineering, Chonnam National University)
Kim, Yeo Keun (Department of Industrial Engineering, Chonnam National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.31, no.4, 2005 , pp. 303-315 More about this Journal
Abstract
In this paper we address a design problem for hub-and-spoke networks and then consider a capacitated hub locations problem with direct shipment (CHLPwD). We determine the location of hubs, the allocation of nodes to hubs, and direct shipment paths in the network, with the objective of minimizing the total cost in the network. In this paper, CHLPwD is formulated as 0-1 integer programming. We develop an evolutionary algorithm here to solve the large sized CHLPwD. To do this, we present the representation and the genetic operators suitable for the problem and propose a heuristic method for the allocation of nodes to hubs. To enhance the search capability, problem-specific information is used in our evolutionary algorithm. The proposed algorithm is compared with the heuristic method in terms of solution quality and computation time. The experimental results show that our algorithm can provide better solutions than the heuristic.
Keywords
hub-and-spoke; hub location problem; evolutionary algorithm; direct shipment;
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