Journal
COMPUTERS & OPERATIONS RESEARCH
Volume 36, Issue 12, Pages 3097-3106Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cor.2008.10.004
Keywords
Hub-and-spoke networks; Benders decomposition; Large scale optimization; Mixed integer non-linear programming
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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. (C) 2008 Elsevier Ltd. All rights reserved.
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