Robust optimization approach to capacitated single and multiple allocation hub location problems

Hub location problem is one of the new emerging and prosperous areas in the classical facility location theory. As a part of the decision-making process, supply chain managers of organizations and companies must pay special attention to these issues. In strategic planning, decisions have long-term effects and program implementation will take a long time. Hence, in the decisions taken, uncertainty should be considered. Uncertainty can be regarded as a property of the system that describes the flaws of human knowledge about a system and its progress included. This paper considers single allocation and multiple allocation hub location problems (SAHLP and MAHLP). First, general models of capacitated single and multiple allocation hub location problems (CSAHLP and CMAHLP) are introduced, then a robust optimization approach is used for dealing with uncertain parameters. Finally, the uncertainty of parameters such as fixed setup cost and capacity of each hub on Iranian Aviation Dataset Karimi and Bashiri (Scientia Iranica 18:1571–1578, 2011) are studied and the results are presented. The results suggest that ignoring uncertainty in the supply chain network design sometimes causes large losses and expenses. In turn, these inflicted losses cause delay in the implementation phase in long-term expected plans and suspicion in all organizational activities.