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Multi-Cut Implementation of Hub-and-Spoke Problem with Congestion Consideration

Author

Listed:
  • Niloofar Fadavi
  • Yasin Gharehmohammadlou
  • Sina Akbari

Abstract

In this study, we examine a p-hub location problem where the objective function encompasses regular transportation costs, fixed expenses, and congestion costs associated with hubs. We demonstrate that the model for this problem is a convex mixed integer programming problem. To solve the problem, we introduce a multi-cut cutting-plane method and compare its performance to the existing single cut version method. Our findings show that the multi-cut method outperforms the single-cut method in terms of the time required to reach a solution. The results of numerical experiments conducted to support this comparison are also presented.

Suggested Citation

  • Niloofar Fadavi & Yasin Gharehmohammadlou & Sina Akbari, 2025. "Multi-Cut Implementation of Hub-and-Spoke Problem with Congestion Consideration," Applied Economics and Finance, Redfame publishing, vol. 12(2), pages 22-28, May.
    • Handle: RePEc:rfa:aefjnl:v:12:y:2025:i:2:p:22-28
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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