Benders Decomposition for Hub Location Problems with Economies of Scale

Ricardo Saraiva de Camargo (), Gilberto de Miranda () and Henrique Pacca L. Luna ()
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Ricardo Saraiva de Camargo: Department of Applied and Exact Sciences, Federal University of Ouro Preto, João Monlevade, 35931-026, Minas Gerais, Brazil
Gilberto de Miranda: Department of Industrial Engineering, Federal University of Minas Gerais, Pampulha, 30161-010, Belo Horizonte, Minas Gerais, Brazil
Henrique Pacca L. Luna: Computer Sciences Institute, Federal University of Alagoas, Campus A. C. Simões, Tabuleiro dos Martins, 57072-970, Maceió, Alagoas, Brazil

Transportation Science, 2009, vol. 43, issue 1, 86-97

Abstract: 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.

Keywords: hub-and-spoke networks; Benders decomposition; scale economies (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:43:y:2009:i:1:p:86-97

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