Journal article
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.
Language: | English |
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Year: | 2010 |
Pages: | 991-1004 |
ISSN: | 18785794 , 1875080x and 13665545 |
Types: | Journal article |
DOI: | 10.1016/j.tre.2010.05.005 |
ORCIDs: | Pisinger, David |