Abstract
In this paper, we address a hub-spoke network design problem for air-cargo
systems. To build such a network, three kinds of network costs should be considered:
fixed costs for establishing a hub, fixed costs for operating air-cargo on each route
and variable costs occurring on each route. With these kinds of costs, we develop an
optimization model for designing a hub-spoke network in air-cargo systems, including
the hop-count constraint being used effectively to deliver freights. We suggest a dual
based heuristic algorithm to solve our problem. Computational experiments show that
the proposed heuristic is satisfactory in both speed and the quality of the solutions
generated.
