24th Conference of the International Federation of Operational Research Societies
Abstract Submission

404. Demand-driven hub and service network design under uncertainty

Invited abstract in session HC-51: Hub Network Design, stream Hub Location and Network Design.

Thursday, 10:30-12:00
Room: HG – Seminar-Raum Geschichte 1 (1st floor, st. 10)

Authors (first author is the speaker)

1. Sibel A. Alumur
Department of Management Science and Engineering, University of Waterloo
2. Hao Li
Department of Management Science and Engineering, University of Waterloo
3. Gita Taherkhani
Supply Chain Management, Loyola University
4. Mike Hewitt
Loyola University Chicago

Abstract

We study a planning problem for freight carriers that aims to profitably match supply and demand under uncertain shipment volumes. On the supply side, decisions on hub locations and vehicle dispatches are made over a planning horizon. On the demand side, the carrier can expand service by selectively accepting additional long-term and transactional customers. The problem is formulated as a two-stage stochastic program and solved using an enhanced Benders Decomposition. Computational results demonstrate clear improvements over benchmark methods and the benefits of solving the integrated model.

Keywords

Status: accepted


Back to the list of papers