Multi-modal and multi-product hierarchical hub location under uncertainty

This paper aims to model and resolve single allocation multi-product hierarchical hub location problem with considering of uncertainty and quality of service. The designed hierarchical hub network has three levels that the top one consists of fully connected central hub nodes and second and third levels are star network of non-central hub nodes with central hub nodes and demand centers to hub nodes (central and non-central), respectively. In the proposed model, objective functions minimizes the sum of transportation and delay costs beside the cost of activating the inactive airline routs, and thereby optimal decision is made on location of hubs, allocation of non-hub nodes to hub nodes and the type of transportation vehicle. For evaluation of the proposed model a collected dataset of Iran is used. Sensitivity analysis of model’s behavior with parameters’ change is done and resulted in management implications.