2-Stage stochastic programming approach for hub location problem under uncertainty: a case study of air network of Iran

Abstract

In this paper 2-stage stochastic programming has been developed for formulating stochastic uncapacitated multiple allocation hub location problem. This problem is studied under three cases. The first, stochastic demand, the second, stochastic transportation cost and the third, integrated stochastic, which is compounded of first and second cases. A case of air network in Iran is used to evaluate proposed formulations and computational results obtained by GAMS are presented. The results show that considering uncertainty into formulation could cause in different solutions.