Journal article
Sustainable hub location under uncertainty
Transportation research. Part B: methodological, Vol.187, 103040
09/2024
DOI: 10.1016/j.trb.2024.103040
Abstract
This paper addresses the sustainable design of hub networks under uncertainty in the context of less-than-truckload transportation, taking into account factors related to carbon pricing. The problem is modeled to maximize profits in a stochastic demand environment, where a portion of the demand may remain unserved depending on the trade-off between profits, costs, and carbon emissions. The model explicitly incorporates a carbon tax into the objective function, along with transportation and hub operation costs. To ensure compliance with the carbon cap, a constraint is incorporated to limit the emissions across the entire transportation network. The carbon emission on each arc of the network is modeled using a generic convex function that depends on the total demand routed on the arc which is then approximated by a piecewise linear function to derive a mixed-integer stochastic formulation. A Benders-decomposition-based algorithm coupled with a sample average approximation scheme is developed to solve the stochastic model. The algorithm is enhanced with acceleration techniques to solve large-scale instances. Extensive computational experiments are conducted to evaluate the efficiency of the proposed algorithm and also to analyze the impact of incorporating carbon pricing factors on optimal hub networks. Computational results provide insights into sustainable hub network designs.
•Modeled a sustainable hub network design problem under demand uncertainty.•Incorporated carbon pricing factors including a carbon tax and carbon cap.•Developed an exact algorithm and solved realistic-size instances.•Analyzed the impact of carbon pricing factors on the resulting hub networks.
Details
- Title: Subtitle
- Sustainable hub location under uncertainty
- Creators
- Gita Taherkhani - Loyola University ChicagoMojtaba Hosseini - Tippie College of Business, University of Iowa, IA, USASibel A. Alumur - University of Waterloo
- Resource Type
- Journal article
- Publication Details
- Transportation research. Part B: methodological, Vol.187, 103040
- Publisher
- Elsevier Ltd
- DOI
- 10.1016/j.trb.2024.103040
- ISSN
- 0191-2615
- eISSN
- 1879-2367
- Language
- English
- Date published
- 09/2024
- Academic Unit
- Business Analytics
- Record Identifier
- 9984696672902771
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