A Benders decomposition approach for the charging station location problem with plug-in hybrid electric vehicles

The flow refueling location problem (FRLP) locates p stations in order to maximize the flow volume that can be accommodated in a road network respecting the range limitations of the vehicles. This paper introduces the charging station location problem with plug-in hybrid electric vehicles (CSLP-PHEV) as a generalization of the FRLP. We consider not only the electric vehicles but also the plug-in hybrid electric vehicles when locating the stations. Furthermore, we accommodate multiple types of these vehicles with different ranges. Our objective is to maximize the vehicle-miles-traveled using electricity and thereby minimize the total cost of transportation under the existing cost structure between electricity and gasoline. This is also indirectly equivalent to maximizing the environmental benefits. We present an arc-cover formulation and a Benders decomposition algorithm as exact solution methodologies to solve the CSLP-PHEV. The decomposition algorithm is accelerated using Pareto-optimal cut generation schemes. The structure of the formulation allows us to construct the subproblem solutions, dual solutions and nondominated Pareto-optimal cuts as closed form expressions without having to solve any linear programs. This increases the efficiency of the decomposition algorithm by orders of magnitude and the results of the computational studies show that the proposed algorithm both accelerates the solution process and effectively handles instances of realistic size for both CSLP-PHEV and FRLP.