Benders Decomposition for Hub Location Problems with Economies of Scale

• DOI: 10.1287/trsc.1080.0233
• Publication Date: 2008-06-11T00:45:27Z
• Authors: Ricardo Saraiva d...; Gilberto de Miranda; Henrique Pacca L....
• Keywords: Benders' decomposition; Spoke-hub distribution paradigm

When considering hub-and-spoke networks with multiple allocation, the classical models of literature compute solutions large discount factors for small flows on interhub connections. Addressing economies scale issue, a tighter formulation this problem is presented, bringing forward special structure. A specialized version Benders decomposition then developed to solve instances in reasonable time.