Abstract
We have proposed a new meta-heuristic method termed Hybrid Tabu Search to solve a hierarchical logistics optimization problem. It is formulated as a p-Hub problem with capacity constraint. The method divides the solution procedure into two levels. Its upper level solves a Hub location problem based on the sophisticated Tubu Search and the lower a connecting problem by Dijkstra method in terms of Lagrangean relaxation. We also call attention on the discount effect regarding mass transport. Through numerical experiments, we confirmed that the proposed method outperformed the commercial software known popularly, and can deal with the real life problems effectively.
