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

Niloofar Fadavi, Yasin Gharehmohammadlou, Sina Akbari

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.


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DOI: https://doi.org/10.11114/aef.v12i2.7667

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Applied Economics and Finance    ISSN 2332-7294 (Print)   ISSN 2332-7308 (Online)

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