INTEGRATED HUB LOCATION AND CAPACITATED VEHICLE ROUTING PROBLEM OVER INCOMPLETE HUB NETWORKS

Hub location problem is one of the most important topics encountered in transportation and logistics management. Along with the question of where to position hub facilities, how routes are determined is a further challenging problem. Although these two problems are often considered separately in the literature, here, in this study, the two are analyzed together. Firstly, we relax the restriction that a vehicle serves between each demand center and hub pair and propose a mixed-integer mathematical model for the single allocation p -hub median and capacitated vehicle routing problem with simultaneous pick-up and delivery. Moreover, while many studies in hub location problem literature assume that there is a complete hub network structure, we also relax this assumption and present the aforementioned model over incomplete hub networks. Computational analyses of the proposed models were conducted on various instances on the Turkish network. Results indicate that the different capacity levels of vehicles have an important impact on optimal hub locations, hub arc networks, and routing design.