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Multi-Cut Implementation of Hub-and-Spoke Problem with Congestion Consideration

Niloofar Fadavi, Yasin Gharehmohammadlou and Sina Akbari

Applied Economics and Finance, 2025, vol. 12, issue 2, 22-28

Abstract: In this study, we examine a p-hub location problem where the objective function encompasses regular transportation costs, fixed expenses, and congestion costs associated with hubs. We demonstrate that the model for this problem is a convex mixed integer programming problem. To solve the problem, we introduce a multi-cut cutting-plane method and compare its performance to the existing single cut version method. Our findings show that the multi-cut method outperforms the single-cut method in terms of the time required to reach a solution. The results of numerical experiments conducted to support this comparison are also presented.

Date: 2025
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