Available online at www.sciencedirect.

com
Available online at www.sciencedirect.com
ScienceDirect
ScienceDirect
Available
Availableonline
Procedia atatwww.sciencedirect.com
Manufacturing
online 00 (2018) 000–000
www.sciencedirect.com
Procedia Manufacturing 00 (2018) 000–000 www.elsevier.com/locate/procedia

ScienceDirect
ScienceDirect  www.elsevier.com/locate/procedia

Procedia Manufacturing 17 (2018) 911–918

Procedia Manufacturing 00 (2017) 000–000
www.elsevier.com/locate/procedia
28th International Conference on Flexible Automation and Intelligent Manufacturing
28th International ConferenceJune
(FAIM2018), on Flexible Automation
11-14, 2018, and OH,
Columbus, Intelligent
USA Manufacturing
(FAIM2018), June 11-14, 2018, Columbus, OH, USA
Design of a manufacturing hub with modular automation units
Design ofEngineering
Manufacturing a manufacturing
Society International hub with Conference modular 2017,automation unitsJune
MESIC 2017, 28-30
𝑀𝑀𝑀𝑀ℎ𝑑𝑑𝑑𝑑2017, Vigo
𝐵𝐵𝐵𝐵𝐵𝐵ℎ𝑖𝑖𝑖𝑖𝑖𝑖 𝑎𝑎,𝑏𝑏∗ (Pontevedra),
, 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 Spain𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑎𝑎
𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝑎𝑎 , 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸ℎ
𝑀𝑀𝑀𝑀ℎ𝑑𝑑𝑑𝑑 𝐵𝐵𝐵𝐵𝐵𝐵ℎ𝑖𝑖𝑖𝑖𝑖𝑖 𝑎𝑎,𝑏𝑏∗ , 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝐺𝑎𝑎 , 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸ℎ 𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 𝑎𝑎

Costing models for𝑜𝑜𝑜𝑜 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼

𝑎𝑎𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
𝑎𝑎𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑜𝑜𝑜𝑜 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
between used
capacity optimization
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸,𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 in Industry
𝑜𝑜𝑜𝑜 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸,𝑆𝑆ℎ𝑎𝑎ℎ𝑒𝑒𝑒𝑒 4.0: Trade-off
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈,𝑇𝑇𝑇𝑇ℎ𝑟𝑟𝑟𝑟𝑟𝑟,𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
𝑏𝑏𝑆𝑆𝑆𝑆ℎ𝑜𝑜𝑜𝑜𝑜𝑜 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸,𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹
capacity 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠,𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 and operational efficiency
𝑜𝑜𝑜𝑜 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠,𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈,𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀,𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
𝑜𝑜𝑜𝑜 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸,𝑆𝑆ℎ𝑎𝑎ℎ𝑒𝑒𝑒𝑒 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈,𝑇𝑇𝑇𝑇ℎ𝑟𝑟𝑟𝑟𝑟𝑟,𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼
𝑏𝑏𝑆𝑆𝑆𝑆ℎ𝑜𝑜𝑜𝑜𝑜𝑜 𝑜𝑜𝑜𝑜 ∗ 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈,𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀,𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂 𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚: 𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛@𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬.𝐚𝐚𝐚𝐚.𝐢𝐢𝐢𝐢
∗𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂 𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚𝐚: 𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛𝐛@𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬.𝐚𝐚𝐚𝐚.𝐢𝐢𝐢𝐢

Abstract A. Santana , P. Afonso , A. Zanin , R. Wernke

a a,* b b

Abstract a
University of Minho, 4800-058 Guimarães, Portugal
In nowadays transportation, manufacturing b processes 89809-000
Unochapecó, are completed during
Chapecó, SC,the transportation. Complementally manufacturing
Brazil
processes may betransportation,
In nowadays done inside ofmanufacturing
a manufacturing hub. This
processes arestrategy mayduring
completed decreasethetotal transportation
transportation. and manufacturing
Complementally costs. By
manufacturing
increasing
processes may the number
be done of hubs,
inside of total establishment
a manufacturing cost
hub. will
This be growth
strategy too. It is total
may decrease assumed that each and
transportation manufacturing
manufacturinghubcosts.
contains
By
some automation
increasing modules
the number and thetotal
of hubs, manufacturing
establishmenthubcost
capacity depends
will be growthontoo.
its allocated modules.
It is assumed that During different periods,
each manufacturing hub demands
contains
may
somebe changed so
automation
Abstract locatedand
modules hubstheshould increase hub
manufacturing theircapacity
capacities by adding
depends on itsnew modules
allocated while During
modules. some modules
differentofperiods,
other hubs may
demands
be
maynon-activated
be changed so in located
some periods. In this
hubs should paper movable
increase automation
their capacities modules
by adding neware proposed
modules to some
while be transferred
modules ofamong
otherhubs, so a
hubs may
mathematical
Under
be non-activated model
the concept isof
in some presented
"Industry
periods. toIndetermine
4.0",paper
this location
production
movable of processes
manufacturing
automation willhubs
modulesbe and their
pushed
are automation
to be
proposed modules and
increasingly
to be transferred finally optimal
interconnected,
among hubs, so a
modules
informationtransferring
mathematical model on
based scheme
is a realduring
presented different
to determine
time basis and,periods.
location The model performance
of manufacturing
necessarily, much more hubs isand
considered
efficient. by context,
some modules
theirInautomation
this numerical examples.
and
capacity finally optimal
optimization
modules
goes transferring
beyond scheme during
the traditional aim ofdifferent
capacity periods. The modelcontributing
maximization, performance alsois considered by some numerical
for organization’s examples.
profitability and value.
© 2018
Indeed, The
leanAuthors. Published
management by
and Elsevier B.V.
continuous improvement approaches suggest capacity optimization instead of
©© 2018
2018
This The
is an
The Authors.
open accessPublished
Authors. article under
Published by Elsevier B.V.
the CC BY-NC-ND
by Elsevier B.V. license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
maximization. The study
This is an open access articleofunder
capacity
the CCoptimization
BY-NC-ND licenseand costing models is an important research topic that deserves
(http://creativecommons.org/licenses/by-nc-nd/3.0/)
Peer-review
This is an openunder responsibility
access article under of the scientific
CC BY-NC-ND committee of the
license 28th Flexible Automation and Intelligent Manufacturing
(https://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer-review under
contributions fromresponsibility
both the practicalof the and
scientific committee
theoretical of the 28th
perspectives. ThisFlexible
paperAutomation
presents and anddiscusses
Intelligenta Manufacturing
mathematical
(FAIM2018)
Peer-review
(FAIM2018) Conference.
under responsibility of the scientific committee of the 28th Flexible Automation and Intelligent Manufacturing
Conference.
model for capacity
(FAIM2018) Conference. management based on different costing models (ABC and TDABC). A generic model has been
developed and it was used
Keywords: Manufacturing to analyzemodules;
hub; Automation idle capacity and to design
Mobile modules; strategies
Mathematical towards the maximization of organization’s
programming:
value. The trade-off capacity maximization vs operational efficiency is
Keywords: Manufacturing hub; Automation modules; Mobile modules; Mathematical programming:highlighted and it is shown that capacity
optimization might hide operational inefficiency.
1. 2017
© Introduction
The Authors. Published by Elsevier B.V.
Peer-review
Hubs areunder
1. Introductionusedresponsibility of thenetworks
in transportation scientific for
committee of the
collecting andManufacturing Engineering
distributing flows Society
between International
origin Conference
and destination nodes.
2017.
Hubs areHub
Therefore, usedlocation
in transportation
problem networks for collecting
is an important problem andand
distributing flows between
has significant origin
effects on the and
costdestination nodes.
of transportation
Therefore, Hub locationproper
network. Determining problem is an for
location important problem
installing hubs canand improve
has significant effects
distribution of on the cost ofand
commodities transportation
as a result
Keywords:
network.
reduce theCost Models;
total costABC;
Determining TDABC;
proper
of the networkCapacity
location Management;
[1]. for Idle
installing
Therefore, Capacity;
hubs
many Operational
can improve
studies have been Efficiency
distribution context. O’Kelly
of commodities
done in this and [2]
as astudied
result
reduce
the hubthe total cost
location of thefor
problem network [1].
the first Therefore,
time. O’Kellymany studies have
and Campbell [3] been done the
reviewed in this context.
studies O’Kelly
in hub [2]problem
location studied
the hub
until location problem for the first time. O’Kelly and Campbell [3] reviewed the studies in hub location problem
2011.
1. Introduction
until 2011.
2351-9789
The cost© 2018 Thecapacity
of idle Authors. Published by Elsevier information
is a fundamental B.V. for companies and their management of extreme importance
This is an open
2351-9789 © access
2018 Thearticle under
Authors. the CC BY-NC-ND
Published by Elsevier license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
B.V.
in modern
Peer-review
production
under
systems.
responsibility
In general,
of the scientific
it is defined
committee of the
as unused capacity or production potential and can be measured
28th Flexible Automation and Intelligent Manufacturing (FAIM2018)
This is an open access article under CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
in
Conference. under responsibility of the scientific committee of the 28th Flexible Automationetc.
several
Peer-review
ways: tons of production, available hours of manufacturing, The management of the idle capacity
and Intelligent Manufacturing (FAIM2018)
* Paulo Afonso.
Conference. Tel.: +351 253 510 761; fax: +351 253 604 741
E-mail address: psafonso@dps.uminho.pt

2351-9789
2351-9789©©2017
2018The
TheAuthors.
Authors. Published by Elsevier
Published B.V. B.V.
by Elsevier
Peer-review underaccess
This is an open responsibility
article of the scientific
under committee oflicense
the CC BY-NC-ND the Manufacturing Engineering Society International Conference 2017.
(http://creativecommons.org/licenses/by-nc-nd/3.0/)
Peer-review under responsibility of the scientific committee of the 28th Flexible Automation and Intelligent Manufacturing
(FAIM2018) Conference.
10.1016/j.promfg.2018.10.144
912 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 2

Hub location problem can be classified into hub and p-hub location problems. In the p-hub location problem, the
number of installed hubs is given, but in the hub location, the optimal number of installed hubs should be determined.
The differences between these kinds of hub problems were described by O’Kelly and Bryan [4]. Also, the studies in
the context of hub location problem can be classified in single and multiple allocation problems, based on the types
of allocations. Alumur and Kara [1] reviewed more than 100 studies in hub location problem until 2008. They
illustrated that the number of studies by considering single assignment is more than twice multiple assignments. As
a result, studies related to multiple assignments are less, while considering multiple assignment makes problem more
realistic.
In the classic hub location problem, capacity of links are given and their capacities are constant during the planning
horizon. While, capacity of links can be increased or decreased by considering modular hubs. Yaman [5] considered
modular hub location problem for the first time and showed that in real-world conditions, such as airlines, it is
sometimes necessary to add several planes to the network for increasing capacity of the links. The concept of the
modular hub is explained in [6]. The studies [7],[8],[9],[10],[11] considered modular hub models. The studies [7], [8],
[9], [10] considered single allocation while the study [11] considered multiple allocation. Also, most of studies related
to modular hub considered a single time period. The first model for multi period modular hub location problem was
proposed by Nickel and Correia [11].
In the real conditions, sometimes hubs are used for manufacturing as well as collecting and distributing. In this
article, it’s assumed that the transportation network includes the manufacturing hub and automation modules are used
for production inside of the manufacturing hub. In this paper, a model for multi-period modular manufacturing hub is
proposed. Installing manufacturing hubs and increase or decrease in the automation modules in each hub can be
occurred in each period. The demands vary in different time periods. It is assumed that the shortage is not allowed
and demand must be fully answered.
In the model proposed by Nickel and Correia [11], demand increases in each time period and facilities can purchase
extra modules to deal with increasing demand and modules are used for transporting commodities in the network..
While, in real condition demand may increase or decrease in different time periods. In this paper, both increasing and
decreasing in demand are considered. As result, automation modules can be useless due to a drop in demand and this
automation modules can be used the manufacturing hubs that required more automation modules. In this paper, the
manufacturing hubs can send their extra automation modules to other manufacturing hubs. Each manufacturing hub
has a certain number of modules, which are similar to each other. As an example modules can be manufacturing robots
which have predefined tasks in the production process. Adding a module to a center (hub) may increase the center
production capacity. The type of process performed by the module depends on the type of product.
The paper is structured as follows: In the next section, Mathematical model is presented. Numerical tests and
analyzes for the mathematical model have been reported in Section 3. Finally, we make some concluding remarks in
Section 4.

2. Mathematical model
In this section a mathematical model for the multi-period capacitated multiple allocation manufacturing hub
location problem is introduced. The assumptions are as follows:
 The planning period is limited and the planning is done on several time periods.
 Potential manufacturing hub points are selected from the initial points.
 At the beginning of each period, new manufacturing hubs can be installed by allocating some automation
modules in it. The number of allocated automation modules in each manufacturing hub can be increased or
decreased during the planning horizon.
 Each manufacturing hub has limited capacity, so each manufacturing hub can have a limited number of
automation modules.
 The manufacturing hubs are not closed during the planning horizon. So each manufacturing hub has at least
one automation module in each time period.
 The shortage is not allowed and demand must be fully served.
 The multiple allocation is considered in the proposed model.
 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918 913
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 3

 Shipping cost are obtained based on distance between nodes. The distances are symmetric and satisfy the
triangle inequality. At most two manufacturing hubs can be used for transferring commodities from each
origin to each destination.

Parameters:
N Set of nodes
P Set of potential locations for the manufacturing hubs ( P  N )
T Set of time periods
 Capacity of an automation module
QK The maximum number of automation modules that can be assigned to kth hub

wijt The flow between node i and node j over time period t (i, j  N , t  T )

Oit   wijt Total outlet flow from node i over time t (i  N , t  T )

jN

Dit   wtji Total input flow to node i over time t (i  N , t  T )

jN
Cost per unit distance between non-hub to manufacturing hub over time t (t  T )

t

t Cost per unit distance between manufacturing hub to non-hub over time t (t  T )
t Cost per unit distance between two manufacturing hubs over time t (t  T )
f kt Fixed establishment cost for a manufacturing hub in location k in period t
(k  P, t  T )
f kqt Fixed installing cost for q automation modules in a manufacturing hub at location k
in period t ( k  P
, q 1, ..., Qk , t  T )

mkqt Operation cost incurred when q automation modules are installed in a manufacturing
hub at location k in period t ( k  P
, q 1, ..., Qk , t  T )

f kqt Fixed installing cost for q additional automation modules in a manufacturing hub at
P , q 1, ..., Qk 1 , t  T \ 1)
location k in period t ( k 

mkqt Operation cost incurred when q additional automation modules are installed in a
P , q 1, ..., Qk 1 , t  T \ 1)
manufacturing hub at location k in period t ( k 
d ij The distance between nodes i and j (i, j  N )
A The cost of each module transferring in a distance unit.

qt
The parameters g k , hk and
qt
s klqt are obtained by using equations (1), (2) and (3), respectively.

T (1)
qt
g
k f kqt   m kq k  P
,q 1,...,Qk ,t T
 t

T (2)
hkqt f kqt   m kq
 , q 1,...,Q k  1, t T \ 1
k  P
 t

s klqt  q  A  d kl , q 1,...,Q k  1, t T \ 1

k , l  P (3)
 914 Mahdi Bashiri
M.Bashiri , A.Golkarian et al. / Procedia
, E.nikzad / ProcediaManufacturing
Manufacturing1700(2018)
(2018)911–918
000–000 4

Where, g kqt is the total fixed cost of installing and operating a manufacturing hub with q automation modules as
the initial capacity in kth potential node over the time period of t. Also, hkqt is defined as the total cost of installing
and operating q additional automation modules in the manufacturing hub k and in th time period. s klqt is the cost of
transferring q automation modules from manufacturing hub k to manufacturing hub l in period t. s klqt depends on the
number of transmitted automation modules and also the distance between nodes k and l. Decision variables of the
proposed model are defined as follows:
ukt  Let variable u kt be equal to 1 if the node k is a manufacturing hub in period t, and 0 otherwise. (k  P, t T )
zkqt  Let variable zkqt be equal to 1 if manufacturing hub k receives q automation modules in period t, and 0
otherwise. (k  P
, q 1,..., Qk , t T )
r  Let variable rkqt be equal to 1 if manufacturing hub k receives q additional automation modules in period t,
k
qt

, q 1,..., Qk  1, t  T \ 1)
and 0 otherwise. ( k  P

nklqt  Let variable nklqt be equal to 1 if q automation modules are transferred from manufacturing hub k to
manufacturing hub l, in period t, and 0 otherwise. , q 1,..., Qk  1, t  T \ 1)
(k , l  P
xikt  Amount of flow that is collected at manufacturing hub k in period t originated from node i
(i  N , k  P, t T ) .
yklit  Amount of flow that is collected at manufacturing hub k and distributed by manufacturing hub l in period t
originated from i (i  N , l , k  P, t  T ) .
vljit  Amount of flow from origin i destined to node j that is distributed by manufacturing hub l in period t
(i, j  N , l  P, t T ) .
The proposed multi-period capacitated multiple allocation manufacturing hub location problem is as follows:

Q k qt (4)
f u   g z k )   d x d y
t t it
minimize   (  
t qt t t
k k k ik ik kl kl
kN tT  q 1 iN kP tT iN kP lP tT

Qk 1 Qk 1

     d v      h r     s n
t it qt qt qt qt
lj lj k k kl kl
iN lP jN tT k
P tT \ 1 q 1 kP lP
 tT \ 1 q 1

x  O i , i  N , t T (5)
t t
ik
k N
(6)
v  w
it t
lj ij
, i, j  N , t  T
lP
Qk (7)
z  uk , k  P, t T
qt t
k
q 1
(8)
u 1 ,k P
t
k
tT
Q k 1 (9)
, k  P, t  T \ 1
t 1

r  u k
qt 
k
q 1  1
 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918 915
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 5

Q k 1 t 1
(10)
n
qt
 u k

, k , l  P : l  k , t  T \ 1
kl
q 1  1

Q k 1 t 1 (11)
 n kl   u k , k , l  P : l  k , t  T \ 1
qt

q 1 1

Qk t Q k 1 t Q k 1 t Q k 1 t
(12)
 x ik  z k   qr k     qnlk     qn kl ) , k  P, t T
t q q q q
  ( q 
iN q 1   1 q 1   2 lP , k  l q  1   2 lP , k  l q  1   2

Qk t Q k 1 t Q k 1 t Q k 1 t (13)
    qn   qn Q , k  P, t T
q q
qz qr
q q
k
 k
 lk
 kl k

q 1 1 
q 1 2 
lP , k  l q 1 2 
lP , k  l q 1 2

Qk t Q k 1 t Q k 1 t Q k 1 t t
(14)
     qn    qn   u k , k  P, t T
q q 
qz qr
q q
k
 k
 lk
 kl

q 1 1 
q 1 2 lP , k  l q  1   2 lP , k  l q  1   2 1
(15)
 y  y x ik   v kj , i  N , k  P, t T
it it t it
 
kl lk
lP , k  l lP , k  l jN

x , i  N , k  P, t T
(16)
 y
it t
 ik
kl
lP , k  l
t (17)
x
t
ik
 O i (1   u i )
t 
, i, k  P : i  k , t  T
 1
t (18)
v
it
jl
 D j u l
t 
, j  N , l  P, t T
iN 
1
t
, i, k  P : i  k , t  T (19)
v (1   u j )

D
it t
lj
 j
 1
Q K 1 (20)
n  1 , k , l  P : l  k , t  T \ 1
qt
lk
q

Q K 1 Q K 1 (21)
n
qt
 n
qt
1 , k , l  P : l  k , t  T \ 1
kl lk
q q

(22)
u  0,1 , k  P, t T
t
k
(23)
z  0,1 , k  P
qt
k
, q 1,..., Qk , t T
(24)
r  0,1 , k  P
, q 1,..., Qk  1, t  T \ 1
qt
k
(25)
n  0,1 , k  P
, q 1,..., Qk  1, t  T \ 1
qt
kl
(26)
x
t
ik
0 , i  N , k  P, t T
(27)
y
it

kl
0 , i  N , l , k  P, t T
(28)
v
it
lj
0 , i, j  N , l  P, t T

Objective function (4) represents the costs of installing the manufacturing hub with a given number of automation
modules, transporting commodities and transmission and expansion of the automation modules. Constraints (5) assure
that the flow originated in each node is routed via at least one manufacturing hub in each time period. Constraints (6)
ensure that the flow between each pair of nodes i, j is equal to their demands. Constraints (7) impose that in each time
916 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 6

period, an established hub should have a certain number of automation modules which define its initial capacity.
Constraints (8) state that one manufacturing hub can be installed at most once during the planning horizon. Constraints
(9) state that the expansion of the manufacturing hub’s capacity in a time period is only allowed if that hub been
installed in previous periods. Constraints (10) and (11) state that the modules can be transferred between
manufacturing hubs if the hubs were installed in previous time periods. Constraints (12), assure that, for each
manufacturing hub, in each time period, the incoming flow from non-hubs at the manufacturing hub cannot exceed its
capacity. Constraints (13) determine maximum number of automation modules that can be installed in each potential
location in each time period. Constraints (14) guarantee that opened manufacturing hub cannot be closed. Constraints
(15) guarantee that the flow is collected by each manufacturing hub are equal to the flow distributed. Constraints (16)
represents the relation between the decision variables x ikt and y klit . Constraints (17) guarantees that out coming flow
from each origins is less than o it . Constraints (18) state that the flow can be distributed by an established manufacturing
hub only. A manufacturing hub needs to distribute its own inbound flow as stated by constraints (19). Constraints (20)
ensure that in each time period, each manufacturing hub is only allowed to transfer this automation module.
Constraints (21) state that each manufacturing hub can receive modules only from one manufacturing hub in each
period time. Constraints (22)-(28) define type of decision variables.

3. Computational results

The proposed mathematical model was solved by GAMS, and executed on an Intel Core i7 with 2.8 GHz CPU and
12 GB of RAM. To show the validity of the proposed model, first 20 nodes in the CAB dataset are used. The values
of other parameters are defined based on [11] and shown in Table 1.

Table 1. The values of parameters

Symbol Value

N
*
20
P
*
15 P  N
T 3
Qk 5 k  1,..., P
* 75000
( t   )* 0.2 t T
t   t 1 t T
f k1 T  15log(Ok ) k P
f kt 1.02  f kt 1 k  P, t  T \ 1
f kq1   f k1  q k P, q 1,..., Q k, 0.2
f kqt 1.02  f kq ,t 1 , q 1,..., Qk , t  T \ 1
k  P
mkq1 0.6    f k1  q k P, q 1,..., Q k, 0.2
mkqt 1.02  mkq ,t 1 , q 1,..., Qk , t  T \ 1
k  P
f kq1 2   f k1  q k P, q 1,..., Q k, 0.2
f kqt 1.02  f kq ,t 1 , q 1,..., Qk , t  T \ 1
k  P
mkq1 0.6    f k1  q k P, q 1,..., Q k, 0.2
mkqt 1.02  mkq ,t 1 , q 1,..., Qk , t  T \ 1
k  P
*The value of these parameters differ from [11]
1 CAB
The demand of each link are obtained based on wij  wij (i , j  N ) in the first time period. The flows for the
other periods are calculated based on equation (29). The calculated number with
wijt  (1   ) wijt 1 (i, j  N , t  T ) (29)
 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918 917
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 7

Where  is the random number between 0 and 1. Numerical Examples have been performed to show the accuracy
and validity of the proposed model.
At first, the efficiency of the proposed model is shown by comparison between the proposed model and model
proposed by [11]. The differences between the objective function values of the models under different values of
automation modules' capacities are shown in Fig .1. The results show that using the proposed model have cost saving
and amount of cost saving increases by increasing of modules capacities.

5000
values the proposed model and the

4500
Differences between objective

4000
model proposed by [11]

3500
3000
2500
2000
1500
1000
500
0
125000 115000 105000 95000 85000 75000 65000 55000
Capacity of a module

Fig. 1. Comparison between the proposed model and the model proposed by [11]

The validity of the proposed model is shown by examining the effects of transferring cost on the number of
transmitted automation modules. The results are presented in Fig. 2. As shown in Fig. 2, by increasing the cost of
transferring each automation module, the number of transferred automation modules is reduced.

27
24
Number of transferred
automation modules

21 23
18
15
16
12
9 12
10
6 9
7
3 3 0
0
0.001 0.005 0.01 0.05 0.1 0.5 1 5
Transfering cost

Fig.2. The effect of the transferring cost coefficient on the number of transferred modules

To show the efficiency of the proposed model, the differences between objective function values of our model and
model proposed in [11] are compared under different values of  and shown in Fig. 3. Based on the results, it can be
concluded that the proposed model performs better when changes in demands are high enough in different time
periods. It can also be seen that increasing the value of  , causes more difference between the classic and the proposed
models.
918 Mahdi Bashiri et al. / Procedia Manufacturing 17 (2018) 911–918
M.Bashiri , A.Golkarian , E.nikzad / Procedia Manufacturing 00 (2018) 000–000 8

0.9 9059.131
increasing and decreasing
The difference between
0.8 8481.637
0.7 7639.965
0.6 7380.49
demand

0.5 5369.247
0.4 3792.613
0.3 2501.691
0.2 2101.735
0.1 1964.094
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Differences between objective values the proposed model and the model proposed by [11]
Fig.3. The effect of variations ω on the differences between objective values of the proposed model and the model proposed by [11]

4. Conclusions

In this paper we investigated a model for designing a manufacturing hub with modular automation units. We proposed
a new integrated manufacturing and transportation network. In this network, manufacturing hubs are used for
production as well as collection and distribution and automation modules are used for producing commodities in the
manufacturing hub. In the proposed model, it’s assumed that the automation modules can be transferred between
manufacturing hubs for reducing the production cost. By using the proposed model, the number of idle automation
modules is minimized and the cost of installing automation modules is also reduced and the efficiency of the
manufacturing and transportation network is improved.The transmission of a module only will increase the
manufacturing hubs capacity and has no effect on the quality of the final product. The proposed model considers
manufacturing and transportation simultaneously and as a result, nodes will not face to shortages and there is no delay
in scheduled production and delivery time. The results of numerical experiments indicated that the model presented
in this paper can reduce the total cost of the network and when demand fluctuations are high. In order to continue
research in the future, features such as considering product types, types of modules, sequence of operation, and
considering uncertain parameter such as demand can be considered as the future of research and their impacts on the
network cost may be examined.

References

[1] Alumur S, Kara BY. Network hub location problems: The state of the art. European journal of operational research. 2008;190(1):1-21.
[2] O'kelly ME. A quadratic integer program for the location of interacting hub facilities. European Journal of Operational Research.
1987;32(3):393-404.
[3] Campbell JF, O'Kelly ME. Twenty-five years of hub location research. Transportation Science. 2012;46(2):153-69.
[4] Bryan DL, O'kelly ME. Hub‐and‐spoke networks in air transportation: an analytical review. Journal of regional science. 1999;39(2):275-95.
[5] Yaman H, Carello G. Solving the hub location problem with modular link capacities. Computers & operations research. 2005;32(12):3227-45.
[6] Yaman H. Star p-hub median problem with modular arc capacities. Computers & Operations Research. 2008;35(9):3009-19.
[7] Hoff A, Peiró J, Corberán Á, Martí R. Heuristics for the capacitated modular hub location problem. Computers & Operations Research.
2017;86:94-109.
[8] Tanash M, Contreras I, Vidyarthi N. An exact algorithm for the modular hub location problem with single assignments. Computers &
Operations Research. 2017;85:32-44.
[9] Corberán Á, Peiró J, Campos V, Glover F, Martí R. Strategic oscillation for the capacitated hub location problem with modular links. Journal
of Heuristics. 2016;22(2):221-44.
[10] Alumur SA, Nickel S, Saldanha-da-Gama F, Seçerdin Y. Multi-period hub network design problems with modular capacities. Annals of
Operations Research. 2016;246(1-2):289-312.
[11] Correia I, Nickel S, Saldanha-da-Gama F. A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and
inequalities. Omega. 2018;74:122-34.