A Stochastic Profit Maximizing Hub Location-Routing Model for Rapid TransitNetworks Design Considering Transfer Effects

This study focuses on the development of a stochastic profitmaximizing hub location-routing model for rapid transitnetwork design problem, where transfers are considered.Due to the use of rapid transit systems, the developed huband spoke model consists of stopovers (stations) in the huband spoke alignments. The decisions to make concern thelocation of the hub and spoke nodes, the selection of the huband spoke edges, the determination of the hub and spokelines, and the routing of flows through the lines. Uncertaintyis assumed for the demands, represented by a finite set ofscenarios, and the problem is formulated through a twostagestochastic modeling framework. The goal is tomaximize the total expected profit. Transfers are penalizedthrough including their costs in the objective function,considering that passengers always try to avoid them whencommuting. The performance of the proposed model isevaluated through computational tests using the well-knownAP dataset. Some managerial insight is also providedthrough the analysis of the resulting networks under variousparameter settings.

Keywords:

Hub Location , Hub and Spoke Network , Rapid TransitNetwork , Line Planning , Stochastic Optimization , Transfers.