Benders Decomposition for Hub Location Problems with Economies of Scale

Ricardo Saraiva de Camargo, Gilberto de Miranda, Henrique Pacca Loureiro Luna

Transportation Science · 2008 · 113 citations · 39 references

Concepts

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.

References

39