Ordered Median Hub Location Problems with Capacity Constraints

TL;DR

This paper addresses the capacitated ordered median hub location problem, introducing new formulations and preprocessing techniques that significantly improve computational efficiency for solving these complex logistics models.

Contribution

It presents two novel formulations and a strengthened version using valid inequalities for the capacitated ordered median hub location problem.

Findings

Significant reduction in solving times with proposed improvements

Effective preprocessing phases for variable fixing

Validated on AP library data with improved performance

Abstract

The Single Allocation Ordered Median Hub Location problem is a recent hub model introduced in Puerto et al. (2011) that provides a unifying analysis of a wide class of hub location mod- els. In this paper, we deal with the capacitated version of this problem, presenting two formulations as well as some preprocessing phases for fixing variables. In addition, a strengthening of one of these formulations is also studied through the use of some fami- lies of valid inequalities. A battery of test problems with data taken from the AP library are solved where it is shown that the running times have been significantly reduced with the improvements presented in the paper.