Multiple allocation hub-and-spoke network design under hub congestion |
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| Authors: | RS de Camargo G Miranda Jr RPM Ferreira HP Luna |
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| Affiliation: | aDepartment of Industrial Engineering, Federal University of Minas Gerais, Brazil;bDepartment of Computer Science, Pontifical Catholic University of Minas Gerais, Brazil;cComputer Science Institute, Federal University of Alagoas, Brazil |
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| Abstract: | The multiple allocation hub-and-spoke network design under hub congestion problem is addressed in this paper. A non-linear mixed integer programming formulation is proposed, modeling the congestion as a convex cost function. A generalized Benders decomposition algorithm has been deployed and has successfully solved standard data set instances up to 81 nodes. The proposed algorithm has also outperformed a commercial leading edge non-linear integer programming package. The main contribution of this work is to establish a compromise between the transportation cost savings induced by the economies of scale exploitation and the costs associated with the congestion effects. |
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| Keywords: | Hub-and-spoke networks Benders decomposition Large scale optimization Mixed integer non-linear programming |
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