A model for a reliable single allocation hub network design under massive disruption

Hub facilities may fail to operate in networks because of accidental failures such as natural disasters. In this paper, a quadratic model was presented for a reliable single allocation hub network under massive random failure of hub facilities which more than one hub may be disrupted in a route. It determines the location of the hub facilities and the primal allocation of non-hub nodes. It also determines the backup allocation in case of failure of the primal hub. First, a new lexicographic form of a bi-objective quadratic model is presented where the first objective maximizes served demands or equivalently, minimizes lost flows and the second objective minimizes total cost under a to massive disruption in the network. Then, by adding a structure-based constraint, the model is transformed to a single objective one. A linearization technique reported in the literature is applied on the quadratic model to convert it into classic linear zero–one mixed integer model while enhancing it by finding tighter bounds. The tight bounds’ technique is compared with other techniques in terms of computational time and its better performance was approved in some problem instances. Finally, due to the NP-hardness of the problem, an iterated local search algorithm was developed to solve large sized instances in a reasonable computational time and the computational results confirm the efficiency of the proposed heuristic, ILS can solve all CAB and IAD data set instances in less than 15 and 24 seconds, respectively. Moreover, the proposed model was compared with the classical hub network using a network performance measure, and the results show the increased efficiency of the model.