Hub Location

This chapter discusses models and solution techniques for hedging against uncertainty in hub location problems. This area grew significantly in a little more than a decade. Thus, a rich literature exists. It requires segmenting the chapter starting from some base settings and progressively discussing more comprehensive models. Accordingly, the chapter starts by considering uncapacitated problems with complete hub networks. A distinction is made between problems featuring fixed costs, hub median problems, and hub center and covering problems. The chapter proceeds, discussing the inclusion of capacity constraints and hub network design decisions. Reliability issues are then discussed, namely those related to unexpected disruptions at the hubs or edges. Distributionally robust hub location is a recent trend that is also presented. The chapter concludes with hints for further reading and promising research avenues.