Minimizing the transportation cost of delivery companies with uncertain demands and edge length

In this paper, a model formulation based on the uncapacitated multiple allocation P-hub location problem is proposed to minimize transportation costs. We develop the modelformulation with these assumptions that flows and distances are uncertain. These uncertain parameters are characterized by agiven number of scenarios. The objective function of this problem minimizes the transportation cost of f'rrst scenario while relativeregret in other scenarios must be no greater than an arbitrary value known as robustness coefficient ( p ::::: 0 ). Meanwhile, based on the variable neighborhood search, a heuristic isproposed to solve the problem. This heuristic is tested through the CAB (Civil Aeronautics Board) data sets and the results are then compared with the CPLEX solver. Computational results show that the algorithm is much more reliable and efficient

Keywords:

Uncapacitated multiple allocation P-hub location problem , Variable neighborhood search , Uncertainty , p-robust optimizing approach