Abstract
This study investigates a congested hub location problem with the aim of optimizing a service provider’s profit by determining hub locations, capacities, and prices for serving commodities. The study incorporates a price-dependent demand function with a general functional form and models hub operations as M/G/1 queueing systems to address congestion effects. The problem is initially formulated as a mixed-integer nonlinear program, which is subsequently transformed into a mixed-integer second-order cone program, demonstrating solvability with standard off-the-shelf solvers. Through numerical analysis, the study evaluates the influence of different demand functional forms and service time constraints on the optimal network configuration and the service provider’s profitability.
Original language | English |
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Article number | 103995 |
Journal | Transportation Research Part E: Logistics and Transportation Review |
Volume | 195 |
ISSN | 1366-5545 |
DOIs | |
Publication status | Published - Mar 2025 |
Keywords
- Hub location problem
- Congestion
- Pricing
- Queuing
- Mixed integer second-order cone programming