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Branch-and-price-and-cut for a service network design and hub location problem

: Rothenbächer, A.-K.; Drexl, M.; Irnich, S.


European Journal of Operational Research 255 (2016), No.3, pp.935-947
ISSN: 0377-2217
Journal Article
Fraunhofer IIS ()

In the context of combined road–rail freight transport, we study the integrated tactical planning of hub locations and the design of a frequency service network. We consider a number of real-world constraints such as multiple transshipments of requests at hubs, transport time limits for requests, request splitting, and outsourcing possibilities. We present a path-based model and solve it with a branch-and-price-and-cut algorithm. Computational experiments show that large realistic instances from a major German rail freight company can be solved close to optimality within one hour on a standard desktop computer, allowing our algorithm to be used for practical planning purposes.