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Interfacility Interaction in Models of Hub and Spoke Networks
Author(s) -
O’Kelly Morton E.,
Bryan Deborah
Publication year - 2002
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/1467-9787.00254
Subject(s) - spoke hub distribution paradigm , maxima and minima , interdependence , computer science , facility location problem , function (biology) , integer (computer science) , operations research , location model , unit (ring theory) , mathematical optimization , flow network , transport engineering , engineering , mathematics , mathematical analysis , mathematics education , evolutionary biology , law , political science , biology , programming language
Providers of transportation services may reduce their average unit costs by bundling flows and channeling them between hubs (also known as concentrators or routers). The resulting facility locations are interdependent because of the flows between them. This paper analyzes mathematical models of hub systems in an effort to enhance understanding of the optimal location of interactive facilities. The paper examines the behavior of solutions to several alternative models that require the location of a hub at either of two similar locations. A model employing a concave cost function favors the assembly of flows, penalizes fractional facility locations, and produces local minima that have integer facilities.