This paper addresses hub location systems with regard to financial issues, in view point of constructors and customers. It challenges classic assumptions of hub location problem and develops three mathematical models which satisfy more realistic assumption. These models are based on three possible policies: 1) constructors (government) want to establish a new system to facilitate public transportation. In this case gaining financial benefits is not high prior 2) constructors want to participate in an economically feasible project and achieve breakeven point within very first period (year) and 3) constructors want to participate in an economically feasible project and gain breakeven point within a predefined make span. In all of them, constructors are fully aware that in a competitive atmosphere they cannot gain all demands. A comprehensive discuss about discount factors and its components, is included to justify the need of using variable discount factors instead of fixed ones. These models then solved by the means of a new genetic based algorithm with new solution representation and GAs’ operators then it is compared with a well-known algorithm so called NSGAII. The performance of these algorithms compared in view point of quality and diversity by the means of two prominent indicators called hypervolume and spacing metric. Computational experiments emphasizes the need of using proposed assumptions and variable discount factors, it also confirm the efficiency of the proposed method.
- bi-objective hub location,
- Genetic algorithms,
- Competitive location,
- public administration transportation,
- Economics of Scale
Available at: http://works.bepress.com/ali_asghar_tofighian/2/