An Integer Programming for the Capacitated Hub Location-Routing Problem

In this paper we consider a capacitated hub location-routing problem (HLRP) which combines the hub location problem and multi-hub vehicle routing decisions. The HLRP not only determines the locations of the capacitated p-hubs within a set of potential hubs but also deals with the routes of the vehicles to meet the demands of customers. This problem is formulated as a 0-1 mixed integer programming model with the objective of the minimum total cost including routing cost, fixed hub cost and fixed vehicle cost. An optimal solution is obtained by using Xpress-MP for the small sized problems. The experimental results show that the proposed mathematical programming approach can be a viable solution method for the intelligent mobility in supply chain network.