Modeling demand elasticity for the hub line location problem

  1. Luisa I. Martínez-Merino
  2. Brenda Cobeña
  3. Iván Contreras
  4. Antonio Manuel Rodriguez-Chia
Actas:
23rd Conference of the International Federation of Operational Research Societies

Editorial: https://ifors2023.com/conference-schedule-and-program

Año de publicación: 2023

Tipo: Aportación congreso

GOOGLE SCHOLAR

Resumen

In this work, we introduce the profit-oriented hub line location problem with elastic demand (ED-HLLP), an extension of the hub line location problem (HLLP) using a gravity model to include the elasticity of demand. ED-HLLP maximizes revenue of the total time reduction provided by the hub line, considering elastic demand and taking into account the long-term impact on the demands that opening a hub line can have. We propose non-linear formulations to address this problem, differing mainly in how the line structure is modeled; due to the limitations the formulations present, we introduce three main linear formulations, using the possible paths of the hub line as variables. Consequently, it is necessary to use a preprocessing phase calculating the candidate paths for each origin-destination. We provide efficient algorithms to create all possible candidate paths and a computational experience evaluating the strengths and limits of these formulations for ED-HLLP.