Department of Industrial Engineering2024-11-0920210041-165510.1287/trsc.2021.10702-s2.0-85120960061https://hdl.handle.net/20.500.14288/2794We propose a novel hub location model that jointly eliminates some of the traditional assumptions on the structure of the network and on the discount as a result of economies of scale in an effort to better reflect real-world logistics and transportation systems. Our model extends the hub literature in various facets: instead of connecting nonhub nodes directly to hub nodes, we consider routes with stopovers; instead of connecting pairs of hubs directly, we design routes that can visit several hub nodes; rather than dimensioning pairwise connections, we dimension routes of vehicles; and rather than working with a homogeneous fleet, we use intermodal transportation. Decisions pertinent to strategic and tactical hub location and transportation network design are concurrently made through the proposed optimization scheme. An effective branch-and-cut algorithm is developed to solve realistically sized problem instances and to provide managerial insights.pdfOperations research and management scienceTransportationJournal Article1526-5447https://doi.org/10.1287/trsc.2021.1070744256100007Q2NOIR03419