Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1023842 | Transportation Research Part E: Logistics and Transportation Review | 2010 | 14 Pages |
Abstract
A mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share—which depends on the service time and transportation cost—by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated Lagrangian method combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.
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Authors
Shahin Gelareh, Stefan Nickel, David Pisinger,