21st International Congress on Modelling and Simulation (MODSIM) held jointly with the 23rd National Conference of the Australian-Society-for-Operations-Research / DSTO led Defence Operations Research Symposium (DORS, Gold-Coast, Australia, 29 November - 04 December 2015, pp.1724-1730
Hub facilities are used in many-to-many transportation networks such as passenger airlines, parcel delivery, and telecommunication system networks. In these networks, the flow that is interchanged between the demand centers is routed via the hubs to provide discounted transport. Many parcel delivery firms serve on a hub based system where the flows from different demand nodes are concentrated, sorted and disseminated at the hub centers in order to transfer them to the destinations points. The main purpose of hub location problem is to decide the location of hub facilities and to allocate demand nodes to the hubs. In hub based systems, as an alternative way of serving each origin destination node directly, the flow is accumulated at the hub facilities in order to exploit the substantial economies of scale.