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Formulations and Decomposition Methods for the Incomplete Hub Location Problem With and Without Hop-Constraints

R. S. Camargo(rcamargo***at***dep.ufmg.br)
Gilberto Miranda(gilbertomirandajr***at***gmail.com)
M. E. O' Kelly(okelly.1***at***osu.edu)
J. F. Campbell(campbell***at***umsl.edu)

Abstract: The incomplete hub location problem with and without hop-constraints is modeled using a Leontief substitution system approach. The Leontief formalism provides a set of important theoretical properties and delivers formulations with tight linear bounds that can explicitly incorporate hop constraints for each origin-destination pair of demands. Furthermore, the proposed formulations are amenable to a Benders decomposition technique which can solve large scale test instances. The performance of the devised algorithm is primarily due to a new general scheme for separating Benders feasibility cuts. This scheme relies on a stabilization step that is directly responsible for the solution of instances up to 80 nodes.

Keywords: Hub location problems, Hub and spoke networks, Leontief flow substitution systems, Benders decomposition method, Improved Benders feasibility cuts.

Category 1: Applications -- OR and Management Sciences (Transportation )

Category 2: Applications -- OR and Management Sciences (Airline Optimization )

Category 3: Applications -- OR and Management Sciences


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Entry Submitted: 08/03/2016
Entry Accepted: 08/03/2016
Entry Last Modified: 08/03/2016

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