Collaborative hub location problem under cost uncertainty. (October 2018)

• Record Type: Journal Article
• Authors: Habibi, M.K. Khakim; Allaoui, Hamid; Goncalves, Gilles
• Is Part Of: Computers & industrial engineering. Volume 124(2018)
• Page Start: 393
• Page End: 410
• Publication Date: 2018-10
• Subjects: Physical internet -- Horizontal collaboration -- Hub location problem -- Uncertainty -- Regret model; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2018.07.028
• Languages: English
• ISSNs: 0360-8352

Abstract

Highlights: A collaborative hub location problem with uncertainty is studied. The uncertainty is related to supplementary costs of collaborative hub setup costs. Forming a collaboration depends on the uncertainty and the cost sharing strategy. Parameters increasing the CPU time are identified by a sensitivity analysis. The solutions of the regret-based MILP model are robust notably in the worst case. Abstract: Collaboration in supply chains by sharing resources has an important role in Physical Internet. It allows the participating supply chains reducing their own and common objective costs. Due to a lack of literature, we focus on hub location problem in collaborative context of two distribution networks belong to different supply chains. The uncertainty corresponding to the supplementary cost included in the setup cost of establishing a shared hub facility is taken into account. Three cases of collaboration and four cost sharing strategies are investigated. Our work allows to verify whether a collaboration proposes better decision and how the total cost is shared among each network to obtain profitable solutions.