Hub location under uncertainty

Hub location problems are network design problems which are solved as part of a strategic decision making process. In strategic planning, decisions may have a long lasting effect and the implementation may take considerable time. Moreover, input data is not precisely known in advance. Hence, decisions have to be made anticipating uncertainty. In this paper, we address several aspects concerning hub location problems under uncertainty. Two sources of uncertainty are considered: the set-up costs for the hubs and the demands to be transported between the nodes. Generic models are presented for single and multiple allocation versions of the problems. Firstly, the two sources of uncertainty are analyzed separately and afterwards a more comprehensive model is proposed considering all sources of uncertainty. Using a set of computational tests performed, we analyze the changes in the solutions driven by the different sources of uncertainty considered isolated and combined.

► Robust optimization models are presented considering uncertainty in the set-up costs. ► Stochastic programming models are presented considering uncertainty in the demands. ► Robust-stochastic models are presented considering uncertainty in the set-up costs and demands. ► Changes in the solutions driven by the different sources of uncertainty are analyzed. ► Optimal hub locations vary with the consideration of different sources of uncertainty.