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ISSN : 1598-7248 (Print)
ISSN : 2234-6473 (Online)
Industrial Engineering & Management Systems Vol.17 No.3 pp.588-599
DOI : https://doi.org/10.7232/iems.2018.17.3.588

The Single-Allocation Heuristic Hub Location Problem Solving

Davood Jafari*, Mahdi Hadian Pour
Department of Industrial Engineering, Islamic Azad University of Tehran, Parand Branch, Iran
* Corresponding Author, E-mail:

Abstract

Hubs are special facilities that consolidate and disseminate flows in many-to-many distribution systems. The hub location problem aims to find locations of hubs and allocate non-hub nodes directly to the hubs. However, this problem is necessary to extend when nodes do not have sufficient demand to justify direct connections between the non-hub nodes to the hubs since such direct connections increase the number of vehicles required and decrease the utilization of vehicles. In this research, after analyzing the definitions of the location of the hub and a variety of location models and their solving algorithms, we solved a case study of the classic Hub Location model algorithm by adding an annual fixed cost to determine the best way to carry goods from one country to another from the top 5 most requested destinations, aimed at minimizing shipping and distribution costs.

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