Hub-and-spoke network design with congestion

  • Authors:
  • Samir Elhedhli;Frank Xiaolong Hu

  • Affiliations:
  • Department of Management Sciences, University of Waterloo, Waterloo, Canada;Department of Management Sciences, University of Waterloo, Waterloo, Canada

  • Venue:
  • Computers and Operations Research
  • Year:
  • 2005

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Abstract

We consider a hub-and-spoke network design problem with congestion. The model we propose extends current models by taking congestion effects into account. This is achieved through a non-linear cost term in the objective function. We first linearize the model, and then provide a Lagrangean heuristic that finds high-quality solutions within reasonable computational time. The results of the model provide new and realistic insights into the hub-and-spoke network design problem.