We describe a decomposition algorithm that combines Benders and scenariobased Lagrangean decomposition for two-stage stochastic programming investment planning problems with complete recourse, where the first-stage variables are mixedinteger and the second-stage variables are continuous. The algorithm is based on the cross-decomposition scheme and fully integrates primal and dual information in...

In this paper, a stochastic programming approach is applied to the airline network revenue management problem. The airline network with the arc capacitated single hub location problem based on complete–star p-hub network is considered. We try to maximize the profit of the transportation company by choosing the best hub locations and network topology, applying revenue management techniques to al...

AbstractEnvironmental, social and economic concerns motivate the operation of closedloop supply chain networks (CLSCN) in many industries. We propose a novel profit maximization model for CLSCN design as a mixed-integer linear program in which there is flexibility in covering the proportions of demand satisfied and returns collected based on the firm's policies. Our major contribution is to dev...

The traffic assignment problem is one of the most important problems for analyzing and optimizing the transportation network to find optimal flows. This study presented a new formulation based on a generalized Benders' decomposition approach to solve its important part, i.e. user equilibrium problems, in deterministic and stochastic cases. The new approach decomposed the problem into a master p...

We study stochastic uncapacitated hub location problems in which uncertainty is associated to demands and transportation costs. We show that the stochastic problems with uncertain demands or dependent transportation costs are equivalent to their associated deterministic expected value problem (EVP), in which random variables are replaced by their expectations. In the case of uncertain independe...

These papers are produced by Cambridge Judge Business School, University of Cambridge. They are circulated for discussion purposes only. Their contents should be considered preliminary and are not to be quoted without the authors' permission. The stochastic uncapacitated single allocation p-hub center problem is an extension of the deter-ministic version which aims to minimize the longest origi...

This article aims to explain the Nested Benders algorithm for the solution of large-scale stochastic programming problems in a way that is intelligible to someone coming to it for the first time. In doing so it gives an explanation of Benders decomposition and of its application to two-stage stochastic programming problems (also known in this context as the L-shaped method), then extends this t...

The design of hub-and-spoke transport networks is a strategic planning problem, as the choice of hub locations has to remain unchanged for long time periods. However, strikes, disasters or traffic breakdown can lead to the unavailability of a hub for a short period of time. Therefore it is important to consider such events already in the planning phase, so that a proper reaction is possible; on...