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3782. Congested Hub Location Problem with Price-dependent Demand

Invited abstract in session TB-61: Nonlinear Location Optimization, stream Locational Analysis.

Tuesday, 10:30-12:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. Ata Jalili Marand
Economics and Business Economics, Aarhus university
2. Pooya Hoseinpour
Department of Industrial Engineering & Management System, Amirkabir University of Technology (Tehran Polytechnic)

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.

Keywords

Status: accepted


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