Abstract

Hub location problems deal with the location of hub facilities and the allocation of the demand nodes to hub facilities so as to effectively route the demand between origin–destination pairs. Transportation systems such as mail, freight, passenger and even telecommunication systems most often employ hub and spoke networks to provide a strong balance between high service quality and low costs resulting in an economically competitive operation. In this study the Modular Hub Location Problem (Multiple assignments without direct connections) (MHLP-MA) is introduced. A Lagrangean relaxation method is used to approximately solve large scale instances. It relaxes a set of complicating constraints to efficiently obtain lower and upper bounds on the optimal solution of the problem. Computational experiments are performed in order to evaluate the effectiveness and limitations of the proposed model and solution method.