NSGA-II algorithm for hub location-allocation problem considering hub disruption and backup hub allocation

One of the practical issues in the area of location and allocation is the location of the hub. In recent years, exchange rates have fluctuated sharply for a number of reasons such as sanctions against the country. Natural disasters that have occurred in recent years caused delays in hub servicing. The purpose of this study is to develop a mathematical programming model to minimize costs, maximize social responsibility and minimize fuel consumption so that in the event of a disruption in the main hub, the flow of materials can be directed to its backup hub to prevent delays in flow between nodes and disruptions in hubs.

A multi-objective mathematical programming model is developed considering uncertainty in some parameters, especially cost as fuzzy numbers. In addition, backup hubs are selected for each primary hub to deal with disruption and natural disasters and prevent delays. Then, a robust possibilistic method is proposed to deal with uncertainty. As the hub location-allocation problem is considered as NP-Hard problems so that exact methods cannot solve them in large sizes, two metaheuristic algorithms including a non-dominated sorting genetic algorithm non-dominated sorting genetic algorithm (NSGA-II) and multi-objective particle swarm optimization (MOPSO) are applied to tackle the problem.

Numerical results show the proposed model is valid. Also, they demonstrate that the NSGA-II algorithm outperforms the MOPSO algorithm.

The proposed model was implemented in one of the largest food companies in Iran, which has numerous products manufactured in different cities, to seek the hub locations. Also, due to several reasons such as road traffic and route type the difference in the rate of fuel consumption between nodes, this model helps managers and decision-makers to choose the best locations to have the least fuel consumption. Moreover, as the hub set up increases the employment rate in that city and has social benefits as it requires hiring some staff.

This paper investigates the hub location problem considering backup hubs with multiple objective functions to deal with disruption and uncertainty. Also, this study examines how non-hub nodes are assigned to hub nodes.