| Article ID: | iaor20082915 |
| Country: | United Kingdom |
| Volume: | 43 |
| Issue: | 5 |
| Start Page Number: | 495 |
| End Page Number: | 505 |
| Publication Date: | Sep 2007 |
| Journal: | Transportation Research. Part E, Logistics and Transportation Review |
| Authors: | Alvarez M.J., Rodrguez V., Barcos L. |
| Keywords: | distribution, facilities, optimization: simulated annealing |
Hub-and-spoke networks are employed in cargo transportation. This paper presents a model for hub location in these kinds of networks. Hubs are considered capacity limited. For that reason, costs due to congestion in hubs are introduced into the model. A Simulated Annealing algorithm has been developed to solve the model. The algorithm includes a balanced module, the purpose of which is to reduce congestion. Each hub is modelled as an M/M/1 queuing system. The algorithm has been tested in randomly created networks. The results show that when a situation of congestion occurs, the proposed algorithm enables better solutions to be found, thereby improving the standard of service.