Question: ( 1 2 . 5 points ) In p - hub median problem, p hubs are opened, origin - destination ( o - d )

(12.5 points) In p-hub median problem, p hubs are opened, origin-destination (o-d) flows
travel via hubs and interhub transportation is discounted by a factor that is between 0 and 1
to reflect transportation economies of scale.
Problem has the following setup:
(1)n demand locations (origin/destinations) are given,
(2) the flow for the n2 location (o-d) pairs is given,
(3) the per unit transportation cost between all location (o-d) pairs and a hub-to-hub
transportation discount factor is given, and
(4) the total amount of flow between hub k and m cannot exceed capacity Ckm.
The objective is to locate p hubs to minimize the total transportation cost of the flows and the
fixed cost of setting up the hubs.
Write down a mixed integer mathematical optimization model of p-hub median problem
and use the following decision variable in your model:
xijkm: the amount of flow (not the percentage) from customer itoj via hubs k and
Notice that x is not between 0 and 1, it denotes total flow in the given route between 0 and
hij, where
hij: denotes the total amount of demand of customer j from customer i
Define other variables and parameters clearly (if necessary)(problem must be linear)
B) Write down the mathematical model of p-median problem. P-median problem has the
following setup: (No partial points will be given!)
(1) n potential locations for facilities,
(2) m customers to serve,
(3) the per unit transportation cost between facilities and customers,
(4) each customer's demand (Di) must be satisfied by one facility,
(5) each facility can serve at most Cj amount of customers' demand.
The objective is to locate p medians to minimize the total transportation cost of the flows and
the fixed cost of setting up the medians.
Write down a mathematical optimization model of p median problem.
 (12.5 points) In p-hub median problem, p hubs are opened, origin-destination

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