An arc cover–path-cover formulation and strategic analysis of alternative-fuel station locations

In this study, we present a new formulation of the generalized flow-refueling location model that takes vehicle range and trips between origin–destination pairs into account. The new formulation, based on covering the arcs that comprise each path, is more computationally efficient than previous formulations or heuristics. Next, we use the new formulation to provide managerial insights for some key concerns of the industry, such as: whether infrastructure deployment should focus on locating clusters of facilities serving independent regions or connecting these regions by network of facilities; what is the impact of uncertainty in the origin–destination demand forecast; whether station locations will remain optimal as higher-range vehicles are introduced; and whether infrastructure developers should be willing to pay more for stations at higher-cost intersections. Experiments with real and random data sets are encouraging for the industry, as optimal locations tend to be robust under various conditions.

► We provide a new efficient formulation for the flow refueling location problem.
► The new formulation reduced the average solution time by over 70%.
► A small number of stations can refuel a large percentage of the total traffic flow.
► Serving independent regions is better when short range vehicles are considered.
► Demand uncertainty has limited impact on percentage of flow covered.