The Reliable Hub-and-spoke Design Problem: Models and Algorithms

This paper presents a study on reliable single and multiple allocation hub-and-spoke network design problems where disruptions at hubs and the resulting hub unavailability can be mitigated by backup hubs and alternative routes. It builds nonlinear mixed integer programming models and presents linearized formulas. To solve those difficult problems, Lagrangian relaxation and Branch-and-Bound methods are developed to efficiently obtain optimal solutions. Numerical studies of proposed solution methods on practical instances along with a few insights of system design are reported

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University of South Florida, May 2011

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