Solution algorithms for the capacitated single allocation hub location problem

In this paper, we present an efficient approach for solving capacitated sin gle allocation hub location problems. We use a modified version of a previo us mixed integer linear programming formulation developed by us for p-hub m edian problems. This formulation requires fewer variables and constraints t han those traditionally used in the literature. We develop good heuristic a lgorithms for its solution based on simulated annealing (SA) and random des cent (RDH). We use the upper bound to develop an LP-based branch and bound solution method. The problem, as we define it, finds applications in the de sign of postal delivery networks, particularly in the location of capacitat ed mail sorting and distribution centres. We test our algorithms on data ob tained from this application. To the best of our knowledge, this problem ha s not been solved in the literature. Computational results are presented in dicating the usefulness of our approach.