Department of Industrial Engineering, AmirKabir University of Technology, 424 Hafez Avenue, Tehran, Iran
Department of Manufacturing Systems and Industrial Engineering, Sabanci University, Orhanli-Tuzla, 34956 Istanbul, Turkey
Department of Industrial and Manufacturing Systems Engineering, Iowa State University, 50011 Ames, USA
Hub location problem (HLP) has been an attractive area of research for more than four decades. A recently proposed problem in the area of hub location is the hierarchical single-allocation hub median problem (SA-H-MP) which is associated with finding the location of a number of hubs and central hubs, so that the total routing cost is minimized. Owing to the problem’s complexity and intractability, this paper puts forward two metaheuristics, simulated annealing (SA) and iterated local search (ILS), and compares their performances. Results show that while both algorithms are able to reach optimal solutions on the standard CAB dataset, their runtimes are negligible and considerably lower compared to the runtimes of exact methods.