Journal
TRANSPORTATION SCIENCE
Volume 43, Issue 1, Pages 86-97Publisher
INFORMS
DOI: 10.1287/trsc.1080.0233
Keywords
hub-and-spoke networks; Benders decomposition; scale economies
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When considering hub-and-spoke networks with multiple allocation, the classical models of the literature compute solutions with large discount factors for small flows on interhub connections. Addressing the economies of scale issue, a tighter formulation for this problem is presented, bringing forward a special structure. A specialized version of Benders decomposition is then developed to solve large instances in reasonable time.
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