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assumptions presented in Sect. 12.2.1 . We next introduce the most important
families of MIP formulations for both single and multiple assignment variants
of p-hub median and hub location problems. These have been successfully used
in combination with sophisticated solution algorithms to obtain optimal solutions
for large-scale instances. They have also been extended to model more complex
variants of HLPs including additional features of real applications. We refer to
Campbell et al. ( 2007 ), Alumur and Kara ( 2009 ), Wagner ( 2008a ), Ernst et al.
( 2009 ), Yaman and Elloumi ( 2012 ), Hwang and Lee ( 2013 ), and Lowe and Sim
( 2013 ) for formulations of p-hub center and hub covering problems.
12.3.1
Single Assignments
A natural way to formulate HLPs with single assignments is to consider them
as facility location problems with additional quadratic costs associated with the
interaction of hub facilities. For each pair i;k 2 N, we define location/allocation
variables z ik , equal to one if node i is assigned to hub k and zero otherwise. When
i D k,variable z kk represents the establishment or not of a hub at node k.The
Uncapacitated Hub Location Problem with Single Assignments (UHLPSA) can be
stated as the following quadratic mixed integer program (O'Kelly 1987 ):
minimize X
k2N
f k z kk C X
i;k2N
.O i C ıD i /d ik z ik C X
i;j;k;m2N
ǛW ij d km z ik z jm
(12.3)
subject to X
k2N
z ik D 1i 2 N
(12.4)
z ik z kk
i;k 2 N
(12.5)
z ik 2f 0;1 g i;k 2 N; (12.6)
where O i D P j2N W ij and O i D P j2N W ji . The first term of the objective
function represents the total set-up cost of the hub facilities, whereas the second
and third term are the flow cost on the access and hub arcs, respectively. Con-
straints ( 12.4 ) guarantee that every O/D node is assigned to exactly one hub, whereas
constraints ( 12.5 ) impose that they can only be assigned to open hubs. Note that
constraints ( 12.4 )-( 12.6 ) define the set of feasible solutions of the Uncapacitated
Facility Location Problem (see Chap. 3 ). However, objective ( 12.3 ) contains an
additional quadratic term associated with the inter-hub flow cost. Several linearized
formulations have been proposed to overcome this added difficulty of UHLPSAs.
An important family of formulations, referred to as path-based formulations ,use
decision variables to characterize O/D paths visiting either one or two hub nodes.
We introduce binary routing variables x ijkm , i;j;k;m 2 N, equal to 1 if and only if
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