| Article ID: | iaor20119267 |
| Volume: | 39 |
| Issue: | 5 |
| Start Page Number: | 329 |
| End Page Number: | 337 |
| Publication Date: | Sep 2011 |
| Journal: | Operations Research Letters |
| Authors: | de Camargo Ricardo Saraiva, de Miranda Gilberto, Ferreira Ricardo P M |
| Keywords: | Benders decomposition, hub location |
Hub‐and‐spoke systems with single assignment are specially vulnerable to congestion. A new scheme concurrently using Outer‐Approximation and Benders method is devised. The proposed approach is used to compare two well‐known congestion cost functions. Even when fitted to each other, the congestion functions yield different networks. Large instances, never reported before, are solved to optimality.