EURO 2025 Leeds
Abstract Submission

3011. A Benders Decomposition approach for the clustered hierarchical hub location problem

Invited abstract in session MB-15: Location problems, stream Combinatorial Optimization.

Monday, 10:30-12:00
Room: Esther Simpson 1.08

Authors (first author is the speaker)

1. Yerlan Kuzbakov
ESSEC
2. Laurent Alfandari
ESSEC Business School

Abstract

The Clustered Hierarchical Hub Location Problem (CHHLP) aims to find the locations of two types of hubs in a transportation network: local and global, and directing traffic through these hubs between each pair of customers at minimum cost. A key feature of CHHLP is the clustering of nodes, where inter-cluster connectivity is exclusively provided by global hubs. A practical application of this problem can be observed in transatlantic transportation systems, where continents function as clusters and seaports serve as global hubs. In this study, we propose a mixed-integer linear programming (MILP) formulation to address the CHHLP. The problem becomes computationally challenging for large-scale instances. To tackle this, we employ a Branch-and-Cut method, where cuts are generated using Benders Decomposition to enhance computational efficiency. Additionally, we explore heuristic approaches to provide near-optimal solutions for larger instances, ensuring a balance between solution quality and computational tractability. We also explore the application of Branch-and-Price techniques to solve various instances of the CHHLP. The results aim to demonstrate the effectiveness and scalability of the proposed methods.

Keywords

Status: accepted


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