Title
Single Allocation Hub Location with Heterogeneous Economies of Scale
Abstract
We study the single allocation hub location problem with heterogeneous economies of scale (SAHLP-h). The SAHLP-h is a generalization of the classical single allocation hub location problem (SAHLP), in which the hub-hub connection costs are piecewise linear functions of the amounts of flow. We model the problem as an integer nonlinear program, which we then reformulate as a mixed integer linear program (MILP) and as a mixed integer quadratically constrained program (MIQCP). We exploit the special structures of these models to develop Benders-type decomposition methods with integer subproblems. We use an integer L-shaped decomposition to solve the MILP formulation. For the MIQCP, we dualize a set of complicating constraints to generate a Lagrangian function, which offers us a subproblem decomposition and a tight lower bound. We develop linear dual functions to underestimate the integer subproblem, which helps us obtain optimality cuts with a convergence guarantee by solving a linear program. Moreover, we develop a specialized polynomial-time algorithm to generate enhanced cuts. To evaluate the efficiency of our models and solution approaches, we perform extensive computational experiments on both uncapacitated and capacitated SAHLP-h instances derived from the classical Australian Post data set. The results confirm the efficacy of our solution methods in solving large-scale instances.
Year
DOI
Venue
2022
10.1287/opre.2021.2185
OPERATIONS RESEARCH
Keywords
DocType
Volume
single allocation, hub location, economies of scale, quadratic program, Benders decomposition, Lagrangian relaxation
Journal
70
Issue
ISSN
Citations 
2
0030-364X
0
PageRank 
References 
Authors
0.34
0
5
Name
Order
Citations
PageRank
Borzou Rostami100.34
Masoud Chitsaz200.34
Okan Arslan300.34
Gilbert Laporte48666612.13
Andrea Lodi52198152.51