An efficient model for the multiple allocation hub maximal covering problem

Abstract

The hub location problem is one of the challenging subjects in location theory. This problem can benefit transportation, telecommunication or delivery systems, in which hub nodes are responsible for receiving, collecting and delivering commodities. This paper discusses the multiple allocation hub maximal covering problem (MAHMCP). In this problem, the flow of an origin–destination pair is transferred via multiple hubs such that the total flow covered by located hubs is maximized. We present a new model for the MAHMCP, which has a significantly smaller number of binary variables compared to previous models. The proposed model is theoretically stronger than past models, and an empirical study using the Australia Post (AP) dataset demonstrates its effectiveness. Our experiments show that the new formulation provides high-quality solutions and fast run times for instances up to 100 nodes.