Logical selection of potential hub nodes in location of strategic facilities by a hybrid methodology of Data Envelopment Analysis and Analytic Hierarchical Process: Iran Aviation case study

Document Type : Research Paper

Authors

1 university of kurdistan

2 Professor, University of Illinois at Chicago

Abstract

Hub facility location problem looks to find the most appropriate location for deploying such facilities. An important factor in such a problem is the pool of potential locations from which the optimal locations must be selected. The present research was performed to address two key objectives: identifying the factors contributing to the selection locations for hub establishment, and presenting an efficient methodology for assessing the efficiency and effectiveness of each node, followed by selecting optimal nodes for establishing potential hubs. The paper begins with a review on related literature, leading to identification and classification of the most important factors and criteria for a hub based on the required features in transportation systems. Subsequently, in order to assess all nodes, the identified factors were grouped into input and output criteria, with the extended Data Envelopment Analysis used to assess the efficiency of the nodes. Moreover, the assessment accuracy was enhanced by weighting the input and output criteria using Analytic Hierarchy Process. A significant achievement of this research was the innovative combination of Analytic Hierarchical Process and Data Envelopment Analysis by presenting a scientific model in the form of a heuristic pair-wise comparison matrix followed by adopting power eigenvector methodology. The result of this hybrid approach highlighted the nodes upon which unavailability the efficiency of other nodes was significantly affected, and new rankings of the nodes upon such unavailability. In order to validate the findings, Iranian Airport Dataset (IAD) was used.

Keywords


-Aji, Y. and Hariga, M. (2013) “An AHP-DEA-based vendor selection approach for an online trading platform”, International Journal of Applied Decision Sciences, Vol. 6, No. 1, pp.66-82.
-Alumur, S. A., Kara, B.Y. and Karasan, O. E. (2012) “Multimodal hub location and hub network design”, Omega, Vol. 40, No. 6, pp.927-939.
-Amin, G. R. and Toloo, M. (2007) “Finding the most efficient DMUs in DEA: An improved integrated model”. Computers and Industrial Engineering, Vol. 52, No. 1, pp.71-77.
-Amin, G. R. (2009) “Comments on finding the most efficient DMUs in DEA: An improved integrated model”, Computers and Industrial Engineering, Vol. 56, No. 4, pp.1701-1702.
-Amiri, M., Zandieh, M., Vahdani, B., Soltani, R. and Roshanaei, V. (2010) “An integrated eigenvector–DEA–TOPSIS methodology for portfolio risk evaluation in the FOREX spot market”, Expert Systems with Applications, Vol. 37, No. 1, pp.509-516.
-An, Y., Zhang, Y. and Zeng, B. (2015) “The reliable hub-and-spoke design problem: Models and algorithms”, Transportation Research Part B: Methodological, Vol. 77, pp.103-122.
-Azadeh, A., Rahimi-Golkhandan, A. and Moghaddam, M. (2014) “Location optimization of wind power generation–transmission systems under uncertainty using hierarchical fuzzy DEA: a case study”, Renewable and Sustainable Energy Reviews, Vol. 30, pp. 877-885.
-Azizi, N. (2017) “Managing facility disruption in hub-and-spoke networks:
formulations and efficient solution methods”, Annals of Operations Research, Vol. 272, No. 1-2, pp. 159-185.
-Bargos, F. F., de Queiroz Lamas, W., Bargos, D. C., Neto, M. B. and Pardal, P.  C. P. M. (2016) “Location problem method applied to sugar and ethanol mills location optimization”,  Renewable and Sustainable Energy Reviews, Vol. 65, pp.274-282.
-Bhatnagar, R. and Sohal, A. S. (2005) “Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturing practices”,  Technovation, Vol. 25, No. 5, pp. 443-456.
-Bunyaratavej, K., Hahn, E. D. and Doh, J. P. (2008) “Multinational investment and host country development: Location efficiencies for services offshoring”, Journal of World Business, Vol. 43, No. 2, pp. 227-242.
-Campbell, J. F., (2009) “Hub location for time definite transportation”. Computers and Operations Research, Vol. 36, No. 12, pp. 3107-3116.
- Chandran, B., Golden, B. and Wasil, E. (2005) “Linear programming models for estimating weights in the analytic hierarchy process”,  Computers and Operations Research, Vol. 32, No. 9, pp. 2235-2254.
-Charnes, A., Cooper, W. W. and Rhodes, E. (1978) “Measuring the efficiency of decision making units”,  European Journal of Operational Research, Vol. 2, No. 6, pp.429-444.
-Correia, I., Nickel, S. and Saldanha-da-Gama, F. (2018) “A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and inequalities”,  Omega, Vol. 74, pp. 122-134.
-Costa, T.F., Lohmann, G. and Oliveira, A.V. (2010) “A model to identify airport hubs and their importance to tourism in Brazil”,  Research in Transportation Economics, Vol. 26, No. 1, pp. 3-11.
-Cunha, C. B. and Silva, M. R. (2007) “A genetic algorithm for the problem of configuring a hub-and-spoke network for a LTL trucking company in Brazil”,  European Journal of Operational Research, Vol. 179, No. 3, pp.747-758.
-De Camargo, R. S., de Miranda Jr, G., O’Kelly, M. E. and Campbell, J. F. (2017) “Formulations and decomposition methods for the incomplete hub location network design problem with and without hop-constraints”, Applied Mathematical Modelling, Vol. 51, pp. 274-301.
-Ernst, A. T. and Krishnamoorthy, M. (1996) “Efficient algorithms for the uncapacitated single allocation p-hub median problem”,  Location science, Vol. 4, No. 3, pp.139-154.
-Ertay, T., Ruan, D. and Tuzkaya, U. R. (2006) “Integrating data envelopment analysis and analytic hierarchy for the facility layout design in manufacturing systems”, Information Sciences, Vol. 176, No. 3, pp.237-262.
-Ertay, T., Kahveci, A. and Tabanlı, R. M. (2011) “An integrated multi-criteria group decision-making approach to efficient supplier selection and clustering using fuzzy preference relations”, International Journal of Computer Integrated Manufacturing, Vol. 24, No. 12, pp.1152-1167.
-Essaadi, I., Grabot, B., and Féniès, P. (2017). “Design of Hybrid Multimodal Logistic Hub Network with Postponement Strategy”. In IFIP International Conference on Advances in Production Management Systems, Springer, Cham, pp. 40-48.
-Farahani, R.Z., Hekmatfar, M., Arabani, A.B. and Nikbakhsh, E., (2013) “Hub location problems: A review of models, classification, solution techniques, and applications”, Computers and Industrial Engineering, Vol. 64, No. 4, pp. 1096-1109.
-Farrell, M.J., (1957). “The measurement of productive efficiency”. Journal of the Royal Statistical Society. Series A (General), Vol. 120, No. 3, pp.253-290.
-Gelareh, S. and Nickel, S. (2011) “Hub location problems in transportation networks”, Transportation Research Part E: Logistics and Transportation Review, Vol. 47, No. 6, pp.1092-1111.
-Gelareh, S., Nickel, S. and Pisinger, D. (2010) “Liner shipping hub network design in a competitive environment”, Transportation Research Part E: Logistics and Transportation Review, Vol. 46, No. 6, pp.991-1004.
-Ghatreh Samani, M., and Hosseini-Motlagh, S. M. (2017) “A Hybrid algorithm for a two-echelon location-routing problem with simultaneous pickup and delivery under fuzzy demand”. International Journal of Transportation Engineering, Vol. 5, No. 1, pp. 59-85.
-Hakimi, S. L. (1964) “Optimum locations of switching centers and the absolute centers and medians of a graph”, Operations Research, Vol. 12, No. 3, pp.450-459.
-Ishfaq, R. and Sox, C. R. (2010) “Intermodal logistics: The interplay of financial, operational and service issues”, Transportation Research Part E: Logistics and Transportation Review, Vol. 46, No. 6, pp.926-949.
-Jenab, K., Khoury, S. and Sarfaraz, A. R. (2012) “Manufacturing complexity analysis with fuzzy AHP”, International Journal of Strategic Decision Sciences (IJSDS), Vol. 3, No. 2, pp. 31-46.
-Jia, H., Ordóñez, F. and Dessouky, M. (2007) “A modeling framework for facility location of medical services for large-scale emergencies”,  IIE Transactions, Vol. 39, No. 1, pp.41-55.
-Karimi, H. and Bashiri, M. (2011) “Hub covering location problems with different coverage types”,  Scientia Iranica, Vol. 18, No. 6, pp.1571-1578.
-Karimi, H. and Setak, M. (2014) “Proprietor and customer costs in the incomplete hub location-routing network topology”,  Applied Mathematical Modelling, Vol. 38, No. 3, pp.1011-1023.
-Khadivi, M. R. and Ghomi, S. F. (2012).“Solid waste facilities location using of analytical network process and data envelopment analysis approaches”, Waste management, Vol. 32, No. 6, pp.1258-1265.
-Kim, H. and O'Kelly, M. E. (2009) “Reliable p‐hub location problems in telecommunication networks”, Geographical Analysis, Vol. 41, No. 3, pp. 283-306.
-Kim, H. and Ryerson, M. S. (2017) “The q-Ad Hoc Hub Location Problem for Multi-modal Networks”, Networks and Spatial Economics, Vol. 17, No. 3, pp. 1015-1041.
-Korani, E. and Sahraeian, R. (2013) “The hierarchical hub covering problem with an innovative allocation procedure covering radiuses”, Scientia Iranica. Transaction E, Industrial Engineering, Vol. 20, No. 6, p.2138.
-Limbourg, S. and Jourquin, B. (2009) “Optimal rail-road container terminal locations on the European network”, Transportation Research Part E: Logistics and Transportation Review, Vol. 45, No. 4, pp. 551-563.
-Lin, C. C. and Lee, S. C. (2010) “The competition game on hub network design”, Transportation Research Part B: Methodological, Vol. 44. No. 4, pp. 618-629.
-Lin, C. C. (2010) “The integrated secondary route network design model in the hierarchical hub-and-spoke network for dual express services”,  International Journal of Production Economics, Vol. 123, No. 1, pp.20-30.
-Lin, C. C., Lin, J. Y. and Chen, Y. C. (2012) “The capacitated p-hub median problem with integral constraints: An application to a Chinese air cargo network”, Applied Mathematical Modelling, Vol. 36, No. 6, pp.2777-2787.
-Mahmutogullari, A. I. and Kara, B.Y. (2016) “Hub location under competition”. European Journal of Operational Research, Vol. 250, No. 1, pp.214-225.
-Melo, M.T., Nickel, S. and Saldanha-Da-Gama, F. (2009) “Facility location and supply chain management–A review”, European Journal of Operational Research, Vol. 196, No. 2, pp. 401-412.
-Mitropoulos, P., Mitropoulos, I. and Giannikos, I. (2013) “Combining DEA with location analysis for the effective consolidation of services in the health sector”, Computers and Operations Research, Vol. 40, No. 9, pp.2241-2250.
-Nadizadeh, A. and Hosseini Nasab, H. (2019) “Modelling and Solving the Capacitated Location-Routing Problem with Simultaneous Pickup and Delivery Demands”, International Journal of Transportation Engineering, Vol. 6. No. 3, pp. 217-235.
-O'kelly, M. E. (1986) “The location of interacting hub facilities”, Transportation Science, Vol. 20, No. 2, pp.92-106.
-Porembski, M., Breitenstein, K. and Alpar, P. (2005). “Visualizing efficiency and reference relations in data envelopment analysis with an application to the branches of a German bank”, Journal of Productivity Analysis, Vol. 23, No. 2, pp.203-221.
-Ray, S. C. (2004) “Data envelopment analysis: theory and techniques for economics and operations research”, Cambridge University Press, pp. 98-100.
-Ren, J. and Xiong, Y. (2010) “An optimized method of weighting combination in multi-index comprehensive evaluation”,  International Journal of Applied Decision Sciences, Vol. 3, No. 1, pp.34-52.
-Revelle, C. S., Eiselt, H. A. and Daskin, M. S. (2008) “A bibliography for some fundamental problem categories in discrete location science”, European Journal of Operational Research, Vol. 184, No. 3, pp.817-848.
-Rostami, B., Kämmerling, N., Buchheim, C., and Clausen, U. (2018) “Reliable single allocation hub location problem under hub breakdowns”, Computers and Operations Research, Vol. 96, pp. 15-29.
-Saaty, T. L. (1996) “Decision making with dependence and feedback: The analytic network process”, Pittsburgh. PA: RWS Publications.
-Saghiri, A. M. and Meybodi, M. R. (2018) “Open asynchronous dynamic cellular learning automata and its application to allocation hub location problem”,  Knowledge-Based Systems, Vol. 139, pp. 149-169.
-Samvedi, A., Jain, V. and Chan, F. T. S. (2012) “An integrated approach for machine tool selection using fuzzy analytical hierarchy process and grey relational analysis”, International Journal of Production Research, Vol. 50, No. 12, pp.3211-3221.
-Shroff, H. E., Gulledge, T. R., Haynes, K. E. and O'Neill, M.K. (1998) “Siting efficiency of long-term health care facilities”, Socio-Economic Planning Sciences, Vol. 32, No. 1, pp.25-43.
-Sun, Z. and Zheng, J. (2016) “Finding potential hub locations for liner shipping”, Transportation Research Part B: Methodological, Vol. 93, pp.750-761.
-Teo, C. P. and Shu, J. (2004) “Warehouse-retailer network design problem”, Operations Research, Vol. 52, No. 3, pp.396-408.
-Thomas, P., Chan, Y., Lehmkuhl, L. and Nixon, W. (2002) “Obnoxious-facility location and data-envelopment analysis: A combined distance-based formulation”. European Journal of Operational Research, Vol. 141, No. 3, pp.495-514.
-Toloo, M. and Tichý, T., (2015). “Two alternative approaches for selecting performance measures in data envelopment analysis”. Measurement, Vol. 65, pp.29-40.-Vasconcelos, A.D., Nassi, C.D. and Lopes, L.A., (2011). “The uncapacitated hub location problem in networks under decentralized management”. Computers and Operations Research, Vol. 38, No. 12, pp.1656-1666.
-Vidović, M., Zečević, S., Kilibarda, M., Vlajić, J., Bjelić, N. and Tadić, S., (2011). “The p-hub model with hub-catchment areas, existing hubs, and simulation: A case study of Serbian intermodal terminals”. Networks and Spatial Economics, Vol. 11, No. 2, pp.295-314.
-Wang, J. J., and Cheng, M. C. (2010). “From a hub port city to a global supply chain management center: a case study of Hong Kong”. Journal of Transport Geography, Vol. 18, No. 1, pp.104-115.
-Xu, R., Zhang, Z., Liu, J., Situ, N., and Jin, J. H. (2017, December). “Facility Location Selection Using Community-Based Single Swap: A Case Study”. In International Conference on Mobile Ad-Hoc and Sensor Networks, Springer, Singapore, pp. 55-69.
-Yaman, H., (2009). “The hierarchical hub median problem with single assignment”. Transportation Research Part B: Methodological, Vol. 43, No. 6, pp.643-658.
-Yaman, H., and Elloumi, S. (2012). “Star p-hub center problem and star p-hub median problem with bounded path lengths”. Computers and Operations Research, Vol. 39, No. 11, pp.2725–2732.
-Zangeneh, M., Akram, A., Nielsen, P., Keyhani, A. and Banaeian, N. (2015) “A Solution Approach for Agricultural Service Center Location Problem Using TOPSIS, DEA and SAW Techniques”, In Technology Management for Sustainable Production and Logistics, pp. 25-56. Springer, Berlin, Heidelberg.
-Zhalechian, M., Torabi, S. A. and Mohammadi, M. (2018) “Hub-and-spoke network design under operational and disruption risks” Transportation Research Part E: Logistics and Transportation Review, Vol. 109, pp. 20-43.