Logo text

Home » Faculty and Research » Research And Publication » Working Papers

Working Papers

 
 Title

Alternate Solution Approaches for Competitive Hub Location Problems

 Authors

Tiwari, Richa; Jayaswal, Sachin; Sinha, Ankur

 Publication Date

10-Dec-2019

 Year

2019

  Publication Code

WP 2019-12-01

 Abstract

In this paper, we study the hub location problem of an entrant airline that tries to maximize its share in a market with already existing competing players. The problem is modelled as a nonlinear integer program, which is intractable for off-the-shelf commercial solvers, like CPLEX and Gurobi, etc. Hence, we propose four alternate approaches to solve the problem. The first among them uses the Kelly's cutting plane method, the second is based on a mixed integer second order conic program reformulation, the third uses the Kelly's cutting plane method within Lagrangian relaxation, while the fourth uses second order conic program within Lagrangian relaxation. The main contribution of this paper lies in the fourth approach, which along with refinements is the most efficient. Many of the problem instances that were not solvable using standard techniques, like the Kelly's cutting plane method, have been solved in less than 2 hours of CPU time within 1% optimality gap.

 
Back