The capacitated multiple allocation hub location problem: Formulations and algorithms

In this paper we consider and present formulations and solution approaches for the capacitated multiple allocation hub location problem. We present a new mixed integer linear programming formulation for the problem. We also construct an efficient heuristic algorithm, using shortest paths. We incorporate the upper bound obtained from this heuristic in a linear-programming-based branch-and-bound solution procedure. We present the results of extensive computational experience with both the heuristic and the exact methods.