Abstract
As a special type of network, the hub-spoke network uses a relatively smaller number of arcs to link many origin and destination points via its hubs, and thus, is often regarded as superior to its point-to-point counterpart by many network researchers. In this paper, however, it is argued that the superiority of a hub-spoke network is established solely from the cost minimization perspective and achieved at the very expense of flow (traffic, data, etc.) delay incurred to all flows rerouted via hubs. The paper also argues that a hub-spoke network may not be superior to its point-point counterpart when delay cost is considered. Therefore, the paper proposes that (1) a system-wide optimality, which considers investment cost and flow delay cost, be used for H-S network design, and (2) the tradeoffs for a point-point, hub-spoke, or a mix be investigated before the hub-spoke is selected. To formalize these arguments, a set of quadratic integer optimization programs based on O’Kelly are developed and linearized under a heuristic strategy, which utilizes the binary nature of the 0–1 integer decision variables.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Alumur, S., Kara, B. Y., & Karasan, O. E. (2009). The design of single allocation incomplete hub networks. Transportation Research Part B, 43(10), 936–951.
Aykin, T., & Brown, G. F. (1992). Interacting new facilities and location allocation problems. Transportation Science, 26(3), 212–222.
Aykin, T. (1994). Lagrangian relaxation based approaches to capacitated hub-spoke network design problem. European Journal of Operational Research, 79, 501–523.
Batten, D. F. (1995). Network cities: Creative urban agglomerations for the 21st century. Urban Studies, 32(2), 313–327.
Berlingerio, M., Coscia, M., Giannotti, F., Monreale, A., & Pedreschi, D. (2011). The pursuit of hubbiness: Analysis of hubs in large multidimensional networks. Journal of Computational Science, 2(3), 223–237.
Boland, N., Krishnamoorthy, M., Ernst, A. T., & Ebery, J. (2004). Preprocessing and cutting for multiple allocation hub location problems. European Journal of Operational Research, 155(3), 638–653.
Brian, J., Berry, L., & Parr, J. B. (1988). Market centers and retail location-theory and application.
Campbell, J. F. (1994a). A survey of network hub location. Studies in Locational Analysis, 6, 31–49.
Campbell, J. F. (1994b). Integer programming formulations of discrete hub location problems. European Journal of Operational Research, 72(2), 387–405.
Campbell, J. F., Ernst, A. T., & Krishnamoorthy, M. (2002). Hub location problems. In Z. Drezner & H. Hammacher (Eds.), Facility location: Applications and theory. Berlin: Springer.
Campbell, J. F., & O’Kelly, M. E. (2012). Twenty-five years of hub location research. Transportation Research Part B, 46(2), 153–169.
Chan, Y., & Ponder, R. (1979). The small package air freight industry in the United States: A review of the Federal Express experience. Transportation Research Part A, 13(4), 221–229.
Christaller, W. (1966). Central places in southern Germany. Upper Saddle River: Prentice-Hall.
Christofides, N., Mingozzi, A., & Toth, P. (1980). Contributions to the quadratic assignment problem. European Journal of Operational Research, 4, 243–247.
Contreras, I., Cordeau, J.-F., & Laporte, G. (2011). Benders decomposition for large-scale un-capacitated hub location. Operations Research, 59(6), 1477–1490.
Easley, D., & Kleinberg, J. (2010). Networks, crowds, and markets: Reasoning about a highly connected world. Cambridge: Cambridge University Press.
Eliane, M. M., Nair, A., Paulo, O. B.-N., & Tania, Q. (2007). A survey of the quadratic assignment problem. European Journal of Operational Research, 176(2), 657–690.
Ernst, A. T., & Krishnamoorthy, M. (1996). Efficient algorithms for the uncapacitated single allocation p-hub median problem. Location Science, 4(3), 139–154.
Freeman, L. C. (2004). The development of social network analysis. A study in the sociology of science.
Freeman, L. C. (1977). A set of measures of centrality based on betweenness. Sociometry, 40(1), 35–41.
Freeman, L. C. (1979). Centrality in social networks conceptual clarification. Social Networks, 1(3), 215–239.
Friedkin, N. E. (1991). Theoretical foundations for centrality measures. American Journal of Sociology, 96(6), 1478–1504.
Fisch, J. E. (2005). How do corporations play politics? The FedEx story. Vanderbilt Law Review, 58(5), 1495–1570.
Fischetti, M., Monaci, M., & Salvagnin, D. (2012). Three ideas for the quadratic assignment problem. Journal of Operations Research, 60(4), 954–964.
Fujita, M., Krugman, P., & Mori, T. (1999). On the evolution of hierarchical urban systems. European Economic Review, 43(2), 209–251.
Goldman, A, J. (1969). Optimal location for centers in a network. Transportation Science, 3(4), 352–360.
Granovetter, M. (1976). Network sampling: Some first steps. American Journal of Sociology, 81, 1287–1303.
Granovetter, M. (1983). The strength of weak ties: A network theory revisited. Sociological Theory, 1(1), 201–233.
Hakimi, S. L. (1964). Optimal locations of switching centers and the absolute centers and medians of a graph. Operations Research, 12(3), 450–459.
Hakimi, S. L. (1965). Optimum distribution of switching centers in a communication network and some related graph theoretic problems. Operations Research, 13(3), 462–475.
Helme, M. P., & Magnanti, T. L. (1989). Designing satellite communication networks by zero-one quadratic programming. Networks, 19, 427–450.
Jaillet, P., Song, G., & Yu, G. (1996). Airline network design and hub location problems. Location Science, 4 (3), 195–211.
Kadushin, C. (2012). Understanding social networks: Theories, concepts, and findings. USA: Oxford University Press.
Kaufman, L., & Broeckx, F. (1978). An algorithm for the quadratic assignment problem using bender’s decomposition. European Journal of Operational Research, 2, 207–211.
Klincewicz, J. G. (1991). Heuristics for the p-hub location problem. European Journal of Operational Research, 53, 25–37.
Marsten, R. E., & Muller, M. R. (1980). A mixed-integer programming approach to air cargo fleet planning. Management Science, 26(11), 1096–1107.
Miehle, W. (1958). Link-length minimization in networks. Operations Research, 6(2), 232–243.
Moreno, J. L. (Ed.). (1956). Sociometry and the science of man. Beacon House.
O’Kelly, M. E. (1986). The location of interacting hub facilities. Transportation Science, 20(2), 92–106.
O’Kelly, M. E. (1987). A quadratic integer program for the location of interacting hub facilities. European Journal of Operational Research, 32(1987), 393–404.
Scott, J., & Carrington, P. J. (2011). The SAGE handbook of social network analysis. SAGE publications.
Skorin-Kapov, D., Skorin-Kapov, J., & O’Kelly, M. E. (1996). Tight linear programming relaxations of uncapacitated p-hub median problems. European Journal of Operational Research, 94(3), 582–593.
Shen, G. (1996). A path-based hub-and-spoke network design model and its linearization. Conference Proceedings of the 1996 IEEE 15th Annual International Phoenix Conference on Computers and Communications, Scottsdale, AZ, USA. https://ieeexplore.ieee.org/document/493655/
Wagner, B. (2007). An exact solution procedure for a cluster hub location problem. European Journal of Operational Research, 178, 391–401.
Wasserman, S., & Faust, K. (1994). Social network analysis: Methods and applications (Vol. 8). Cambridge University Press: Cambridge.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Shen, G. (2019). Optimal Hub-Spoke Network Design with Hub Reroute and Point-Point Connection: A Physical Perspective with Social Relevance. In: Ye, X., Liu, X. (eds) Cities as Spatial and Social Networks. Human Dynamics in Smart Cities. Springer, Cham. https://doi.org/10.1007/978-3-319-95351-9_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-95351-9_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-95350-2
Online ISBN: 978-3-319-95351-9
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)