Hub Location Problems: The Location of Interacting Facilities [chapter]

Bahar Y. Kara, Mehmet R. Taner
2011 International Series in Operations Research and Management Science  
s (1986) classical paper started a new research stream by identifying a connection between spatial interaction models and location theory. The traditional spatial interaction theory applies models of travel behavior to investigate demand patterns between fixed locations. Location theory, on the other hand, takes demand as given, assumes a simple view of travel behavior, and focuses on finding the best location for facilities. Spatial interaction theory focuses on the problem of locating centers
more » ... of locating centers of special interest, and observes that the selected locations have an effect on the evolution of the associated network. O'Kelly's self-identified contribution in this context relates to the interaction effects between facility locations and spatial flows. He makes a distinction between endogenous and exogenous effects. In particular, he considers the given problem parameters as exogenous data, which are endogenously affected by the location of the hubs as well as the allocations. Hubs are special facilities acting as consolidation and dissemination points for the flows. Flows from the same origin with different destinations are consolidated enroute at a hub node where they are combined with flows from different origins with a common destination. The main idea is to keep the flow interactions in perspective at the design stage of the hub network. That is, the hubs need to be strategically located in view of their effects on the intensity and cost of the flow data. In general, the hub location problems are defined as analogous counterparts of the classical location problems with the addition of allocation decisions. This chapter reviews and outlines the research on hub location problems that emerged as a new research stream led by O'Kelly's (1986) seminal paper. Section 12.2 discusses the geographical applications leading the way to the ideas proposed by O'Kelly. Section 12.3 summarizes the major findings presented in H. A. Eiselt, V. Marianov (eds.), Foundations of Location Analysis,
doi:10.1007/978-1-4419-7572-0_12 fatcat:skbs7zlmqjb5pk2swpw3yxemna