Applying an efficient solution algorithm for reliable hub-and-spoke network design problem

Hub-and-spoke (HS) networks have recently received an increased attention due to their multiple applications in public transportation, logistics distribution systems, and telecommunications. Special characteristics of HS networks, makes the overall performance of the network highly depends on proper performance of hubs and connecting links. Therefore, considering the reliability of HS networks is a critical issue in design phase of such networks. In this paper, we address the reliable HS network design problem (RHSNDP) in which the objective is to maximize the total reliability of system using a fixed number of hub facilities. A mathematical programming formulation is presented and a Benders decomposition algorithm is proposed to solve it. Computational results indicate the efficiency of the proposed solution algorithm.