The p-hub median problem consists of choosing p hub locations from a set of nodes with pairwise traffic demands in order to route the traffic between the origin-destination pairs at minimum cost. We accept general assumption that transportation between non-hub nodes is possible only via r-hub nodes, to which non-hub nodes are assigned. In this paper we propose a general variable neighborhood search heuristic to solve the problem in an efficient and effective way. Moreover, for the first time full nested variable neighborhood descent is applied as a local search within Variable neighborhood search. Computational results outperform the current state-of-the-art results obtained by GRASP based heuristic.
Published April 2015 , 14 pages