Publication: Research › Report – Annual report year: 2010
A new mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses competition between a newcomer liner service provider and an alliance, both operating on hub-and-spoke networks. The newcomer company maximizes its market share — proportional to service time and transportation cost —by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated lagrangian method coupled with a primal heuristic obtains very good bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.
|Place of publication||Kgs. Lyngby|
|Number of pages||16|
|Name||DTU Management 2010|
- liner shipping, lagrangian decomposition, enumeration, mixed integer programming, hub-and-spoke network design, competition
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