A strong formulation for Multiple Allocation Hub Location based on supermodular inequalities

Abstract

We introduce a new formulation for the multiple allocation hub location problem that exploits supermodular properties and uses 1- and 2-index variables only. We show that the new formulation produces the same Linear Programming bound as the tightest existing formulations for the studied problem, which use 4-index variables, outperforming existing supermodular formulations adapted to the considered problem. Computational results are presented with instances of up to 200 nodes optimally solved within a time limit of two hours.