IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v200y2010i3p764-773.html
   My bibliography  Save this article

Mathematical models for selection of optimal place and size of connections considering the time-value of money

Author

Listed:
  • Rastpour, Amir
  • Esfahani, M.S.

Abstract

In this study, mathematical models to select the optimal place and size of connections are studied considering the time-value of money. A connection is defined as a part that links different sets of departments through which some interdepartmental material flows must go [S. Huang, R. Batta, R. Nagi, Variable capacity sizing and selection of connections in a facility layout, IIE Transactions 35 (2003) 49-59]. The goal of this paper is to select the location and capacity of the connections so as to minimize the sum of material movement, connection installation and connection maintenance costs minus the salvage value considering the time-value of money. Mixed integer nonlinear programming models are developed for discrete and continuous capacity options. The mixed integer nonlinear programming models of the continuous cases are reduced to mixed integer linear programming models, using proved properties of these problems. For the discrete capacity cases, a computational example and sensitivity analysis of the solutions with respect to possible future changes in the values of parameters are developed and presented.

Suggested Citation

  • Rastpour, Amir & Esfahani, M.S., 2010. "Mathematical models for selection of optimal place and size of connections considering the time-value of money," European Journal of Operational Research, Elsevier, vol. 200(3), pages 764-773, February.
    • Handle: RePEc:eee:ejores:v:200:y:2010:i:3:p:764-773
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(09)00058-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. T. L. Magnanti & R. T. Wong, 1984. "Network Design and Transportation Planning: Models and Algorithms," Transportation Science, INFORMS, vol. 18(1), pages 1-55, February.
    2. Cohn, Amy & Davey, Melinda & Schkade, Lisa & Siegel, Amanda & Wong, Caris, 2008. "Network design and flow problems with cross-arc costs," European Journal of Operational Research, Elsevier, vol. 189(3), pages 890-901, September.
    3. Herrmann, J. W. & Ioannou, G. & Minis, I. & Proth, J. M., 1996. "A dual ascent approach to the fixed-charge capacitated network design problem," European Journal of Operational Research, Elsevier, vol. 95(3), pages 476-490, December.
    4. Montreuil, Benoit & Ratliff, H. Donald, 1988. "Optimizing the location of input/output stations within facilities layout," Engineering Costs and Production Economics, Elsevier, vol. 14(3), pages 177-187, September.
    5. Simin Huang & Rajan Batta & Kathrin Klamroth & Rakesh Nagi, 2005. "The K-Connection Location Problem in a Plane," Annals of Operations Research, Springer, vol. 136(1), pages 193-209, April.
    6. Horner, Mark W. & Groves, Sara, 2007. "Network flow-based strategies for identifying rail park-and-ride facility locations," Socio-Economic Planning Sciences, Elsevier, vol. 41(3), pages 255-268, September.
    7. Romeijn, H. Edwin & Shu, Jia & Teo, Chung-Piaw, 2007. "Designing two-echelon supply networks," European Journal of Operational Research, Elsevier, vol. 178(2), pages 449-462, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gendron, Bernard, 2002. "A note on "a dual-ascent approach to the fixed-charge capacitated network design problem"," European Journal of Operational Research, Elsevier, vol. 138(3), pages 671-675, May.
    2. Ada Alvarez & José González-Velarde & Karim De-Alba, 2005. "Scatter Search for Network Design Problem," Annals of Operations Research, Springer, vol. 138(1), pages 159-178, September.
    3. Agarwal, Y.K. & Aneja, Y.P., 2017. "Fixed charge multicommodity network design using p-partition facets," European Journal of Operational Research, Elsevier, vol. 258(1), pages 124-135.
    4. Gallo, Mariano & D'Acierno, Luca & Montella, Bruno, 2010. "A meta-heuristic approach for solving the Urban Network Design Problem," European Journal of Operational Research, Elsevier, vol. 201(1), pages 144-157, February.
    5. Li, Gang & Balakrishnan, Anantaram, 2016. "Models and algorithms for network reduction," European Journal of Operational Research, Elsevier, vol. 248(3), pages 930-942.
    6. Gutierrez, Genaro J. & Kouvelis, Panagiotis & Kurawarwala, Abbas A., 1996. "A robustness approach to uncapacitated network design problems," European Journal of Operational Research, Elsevier, vol. 94(2), pages 362-376, October.
    7. Petersen, E. R. & Taylor, A. J., 2001. "An investment planning model for a new North-Central railway in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 847-862, November.
    8. Agarwal, Y.K. & Aneja, Y.P. & Jayaswal, Sachin, 2022. "Directed fixed charge multicommodity network design: A cutting plane approach using polar duality," European Journal of Operational Research, Elsevier, vol. 299(1), pages 118-136.
    9. Cipriani, Ernesto & Fusco, Gaetano, 2004. "Combined signal setting design and traffic assignment problem," European Journal of Operational Research, Elsevier, vol. 155(3), pages 569-583, June.
    10. Longinidis, Pantelis & Georgiadis, Michael C., 2014. "Integration of sale and leaseback in the optimal design of supply chain networks," Omega, Elsevier, vol. 47(C), pages 73-89.
    11. Wu, Dexiang & Wu, Desheng Dash, 2020. "A decision support approach for two-stage multi-objective index tracking using improved lagrangian decomposition," Omega, Elsevier, vol. 91(C).
    12. Ortiz-Astorquiza, Camilo & Contreras, Ivan & Laporte, Gilbert, 2018. "Multi-level facility location problems," European Journal of Operational Research, Elsevier, vol. 267(3), pages 791-805.
    13. Lara, Cristiana L. & Koenemann, Jochen & Nie, Yisu & de Souza, Cid C., 2023. "Scalable timing-aware network design via lagrangian decomposition," European Journal of Operational Research, Elsevier, vol. 309(1), pages 152-169.
    14. Klaus Büdenbender & Tore Grünert & Hans-Jürgen Sebastian, 2000. "A Hybrid Tabu Search/Branch-and-Bound Algorithm for the Direct Flight Network Design Problem," Transportation Science, INFORMS, vol. 34(4), pages 364-380, November.
    15. Joseph Y. J. Chow & Amelia C. Regan, 2011. "Real Option Pricing of Network Design Investments," Transportation Science, INFORMS, vol. 45(1), pages 50-63, February.
    16. Nader Naderializadeh & Kevin A. Crowe, 2020. "Formulating the integrated forest harvest-scheduling model to reduce the cost of the road-networks," Operational Research, Springer, vol. 20(4), pages 2283-2306, December.
    17. Melkote, Sanjay & Daskin, Mark S., 2001. "Capacitated facility location/network design problems," European Journal of Operational Research, Elsevier, vol. 129(3), pages 481-495, March.
    18. Wang, Zujian & Qi, Mingyao, 2019. "Service network design considering multiple types of services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 1-14.
    19. Weckström, Christoffer & Mladenović, Miloš N. & Kujala, Rainer & Saramäki, Jari, 2021. "Navigability assessment of large-scale redesigns in nine public transport networks: Open timetable data approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 212-229.
    20. Yogesh Kumar Agarwal & Prahalad Venkateshan, 2019. "New Valid Inequalities for the Optimal Communication Spanning Tree Problem," INFORMS Journal on Computing, INFORMS, vol. 31(2), pages 268-284, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:200:y:2010:i:3:p:764-773. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.