2015•Journal of Industrial and Production EngineeringRequires access

Airline hub-and-spoke system design under stochastic demand and hub congestion

Ta‐Hui Yang, Tzu-Yu Chiu

Abstract

This study addresses the hub network design problem considering demand uncertainty and hub congestion effects. The problem is formulated as a two-stage stochastic program with recourse model. The model provides a consistent set of hub locations, while adjusting network configuration in response to different demand realizations. A case study collected from real-world data was used to test the proposed model, and a sensitivity analysis was performed to know how several important parameters affected the solution.

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Available abstract

Key concepts: Spoke-hub distribution paradigm, Network planning and design, Computer science, Set (abstract data type), Operations research, Sensitivity (control systems), Mathematical optimization, Stochastic modelling