A new hub location model for network design of wagonload traffic

In this paper, we present a specific hub location problem, which arose from a strategic decision problem for network design of wagonload traffic in German railway logistics. The strategic objective is to determine the location, size, and function of formation yards, and the connections between them. These strategic decisions define the network structure and hence, the costs and efficiency of the network. In this paper, we extend a formulation developed earlier. We also do some preprocessing tests to reduce the complexity. The resulting IPs are implemented in GAMS and solved with CPLEX for several test data sets.