AbstractA mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share—which depends on the 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 combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.
Liner shipping hub network design in a competitive environment
Transportation Research Part E: Logistics and Transportation Review ; 46 , 6 ; 991-1004
2010-04-25
14 pages
Article (Journal)
Electronic Resource
English
Liner shipping hub network design in a competitive environment
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