Liner shipping hub network design in a competitive environment
A 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.
Year of publication: |
2010
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Authors: | Gelareh, Shahin ; Nickel, Stefan ; Pisinger, David |
Published in: |
Transportation Research Part E: Logistics and Transportation Review. - Elsevier, ISSN 1366-5545. - Vol. 46.2010, 6, p. 991-1004
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Publisher: |
Elsevier |
Keywords: | Hub-and-spoke network design Liner shipping Competition Mixed integer programming Lagrangian relaxation Enumeration |
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