We study the hub location and routing problem where we decide on the location of hubs, the allocation of nodes to hubs, and the routing among the nodes allocated to the same hubs, with the aim of minimizing the total transportation cost. Each hub has one vehicle that visits all the nodes assigned to it on a cycle. We propose a mixed integer programming formulation for this problem and strengthen it with valid inequalities. We devise separation routines for these inequalities and develop a branch-and-cut algorithm which is tested on CAB and AP instances from the literature. The results show that the formulation is strong and the branch-and-cut algorithm is able to solve instances with up to 50 nodes. (C) 2014 Elsevier Ltd. All rights reserved.
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Univ La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, SpainUniv La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, Spain
Dominguez-Martin, Bencomo
Hernandez-Perez, Hipolito
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Univ La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, SpainUniv La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, Spain
Hernandez-Perez, Hipolito
Riera-Ledesma, Jorge
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Univ La Laguna, Dept Ingn Informat & Sistemas, San Cristobal la Laguna, SpainUniv La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, Spain
Riera-Ledesma, Jorge
Rodriguez-Martin, Inmaculada
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Univ La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, Spain
Univ La Laguna, Fac Ciencias, Dept Matemat Estadist & Invest Operat, POB 456, San Cristobal la Laguna 38200, Tenerife, SpainUniv La Laguna, Dept Matemat Estadist & Invest Operat, San Cristobal la Laguna, Spain