Location Models for Airline Hubs Behaving as M/D/C Queues
Univ. Pompeu Fabra, Economics and Business Working Paper No. 453
32 Pages Posted: 1 May 2000
Abstract
Models are presented for the optimal location of hubs in airline networks, that take into consideration the congestion effects. Hubs, which are the most congested airports, are modeled as M/D/c queuing systems, that is, Poisson arrivals, deterministic service time, and {\em c} servers. A formula is derived for the probability of a number of customers in the system, which is later used to propose a probabilistic constraint. This constraint limits the probability of {\em b} airplanes in queue, to be lesser than a value $\alpha$. Due to the computational complexity of the formulation. The model is solved using a meta-heuristic based on tabu search. Computational experience is presented.
Keywords: Hub location, congestion, tabu-search
JEL Classification: C61, R12, R53
Suggested Citation: Suggested Citation