DURING THE TWO LAST DECADES, A WIDE RANG OF APPLICATION OF HUB NETWORK DESIGN PROBLEMS HAVE RECEIVED INCREASING ATTENTION IN THE FIELDS OF TRANSPORTATION, TELECOMMUNICATIONS, COMPUTER NETWORKS, POSTAL DELIVERY, LESS-THAN-TRUCK LOADING AND SUPPLY CHAIN MANAGEMENT. HUBS ARE SPECIAL FACILITIES USED FOR SWITCHING, TRANSSHIPMENT AND SORTING POINTS IN DISTRIBUTION SYSTEMS. HUB FACILITIES ARE USED TO CONSENTRATE FLOWS IN ORDER TO TAKE ADVANTAGE OF ECONOMIES OF SCALE. IN THIS RESEARCH A MULTIPLE ALLOCATION HUB LOCATION PROBLEM IS CONSIDERED AND IT IS ASSUMED EACH POTENTIAL HUB COULD HAVE MULTIPLE CAPACITY LEVELS. ALSO, A FIXED COST AND A MINIMUM CAPACITY FOR ALL LINKAGES ARE CONSIDERED. IN OTHERE WORDS, THE FLOW BETWEEN EACH LINKAGES CANNOT EXCEED FROM A PREDETERMINED CAPACITY. AT THE END, GAMS SOFTWARE WITH CPLEX SOLVER IS USED TO OPTIMIZE THE PROBLEM IN SMALL SIZES AND ALSO, TO CHECK THE FEASIBILITY OF THE NEW MODEL.