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Capacitated incomplete hub network design problem with link congestion

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  • Sheikhihafshejani, Mahsa
  • Vergara, Hector A.

Abstract

This paper addresses an incomplete hub network design problem with capacity constraints and congestion effect for inter-hub links. We study the problem of identifying hub locations, designing the inter-hub network, and routing demand flows through the network. The objective is to minimize the total cost, including fixed setup costs for hubs and links and transportation costs with a nonlinear congestion cost on the links. We formulate the problem as a mixed-integer program, where transportation costs incorporate a piecewise-linear congestion cost on inter-hub links. A heuristic-based method is proposed to solve the problem efficiently. The heuristic method begins by ranking nodes and links based on demands between nodes for inclusion in the network and iteratively designing the hub network based on this ranking. The solution is further improved using a variable neighborhood search method to find quality solutions. Computational experiments on two well-known benchmark datasets demonstrate that the proposed solution method can obtain high-quality solutions within a reasonable computational time. Finally, we conduct a sensitivity analysis with different parameter settings to evaluate the hub network and the impact of link congestion.

Suggested Citation

  • Sheikhihafshejani, Mahsa & Vergara, Hector A., 2026. "Capacitated incomplete hub network design problem with link congestion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:transe:v:212:y:2026:i:c:s136655452600253x
    DOI: 10.1016/j.tre.2026.104914
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