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A simple heuristic for solving small fixed-charge transportation problems

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  • Adlakha, Veena
  • Kowalski, Krzysztof

Abstract

The fixed-charge transportation problem (FCTP) is an extension of the classical transportation problem in which a fixed cost is incurred, independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The introduction of fixed costs in addition to variable costs results in the objective function being a step function. Therefore, fixed-charge problems are usually solved using sophisticated analytical or computer software. This paper deviates from that approach. It presents a simple heuristic algorithm for the solution of small fixed-charge problems. We present numerical examples to illustrate applications of the proposed method.

Suggested Citation

  • Adlakha, Veena & Kowalski, Krzysztof, 2003. "A simple heuristic for solving small fixed-charge transportation problems," Omega, Elsevier, vol. 31(3), pages 205-211, June.
    • Handle: RePEc:eee:jomega:v:31:y:2003:i:3:p:205-211
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    References listed on IDEAS

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    1. Sun, Minghe & Aronson, Jay E. & McKeown, Patrick G. & Drinka, Dennis, 1998. "A tabu search heuristic procedure for the fixed charge transportation problem," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 441-456, April.
    2. Adlakha, Veena & Kowalski, Krzysztof, 1999. "On the fixed-charge transportation problem," Omega, Elsevier, vol. 27(3), pages 381-388, June.
    3. Lieberman, Warren H., 1986. "Towards improving fishery management systems," Marine Policy, Elsevier, vol. 10(1), pages 42-50, January.
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    Cited by:

    1. Kowalski, Krzysztof & Lev, Benjamin, 2008. "On step fixed-charge transportation problem," Omega, Elsevier, vol. 36(5), pages 913-917, October.
    2. Hong, Jiangtao & Diabat, Ali & Panicker, Vinay V. & Rajagopalan, Sridharan, 2018. "A two-stage supply chain problem with fixed costs: An ant colony optimization approach," International Journal of Production Economics, Elsevier, vol. 204(C), pages 214-226.
    3. Erika Buson & Roberto Roberti & Paolo Toth, 2014. "A Reduced-Cost Iterated Local Search Heuristic for the Fixed-Charge Transportation Problem," Operations Research, INFORMS, vol. 62(5), pages 1095-1106, October.
    4. Jawahar, N. & Balaji, A.N., 2009. "A genetic algorithm for the two-stage supply chain distribution problem associated with a fixed charge," European Journal of Operational Research, Elsevier, vol. 194(2), pages 496-537, April.
    5. Roberto Roberti & Enrico Bartolini & Aristide Mingozzi, 2015. "The Fixed Charge Transportation Problem: An Exact Algorithm Based on a New Integer Programming Formulation," Management Science, INFORMS, vol. 61(6), pages 1275-1291, June.
    6. Aristide Mingozzi & Roberto Roberti, 2018. "An Exact Algorithm for the Fixed Charge Transportation Problem Based on Matching Source and Sink Patterns," Transportation Science, INFORMS, vol. 52(2), pages 229-238, March.
    7. Adlakha, Veena & Kowalski, Krzysztof & Wang, Simi & Lev, Benjamin & Shen, Wenjing, 2014. "On approximation of the fixed charge transportation problem," Omega, Elsevier, vol. 43(C), pages 64-70.
    8. Lev, Benjamin & Kowalski, Krzysztof, 2011. "Modeling fixed-charge problems with polynomials," Omega, Elsevier, vol. 39(6), pages 725-728, December.
    9. J R Montoya-Torres & A Aponte & P Rosas, 2011. "Applying GRASP to solve the multi-item three-echelon uncapacitated facility location problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(2), pages 397-406, February.
    10. Mojtaba Akbari & Saber Molla-Alizadeh-Zavardehi & Sadegh Niroomand, 2020. "Meta-heuristic approaches for fixed-charge solid transportation problem in two-stage supply chain network," Operational Research, Springer, vol. 20(1), pages 447-471, March.
    11. Jesús Sáez Aguado, 2009. "Fixed Charge Transportation Problems: a new heuristic approach based on Lagrangean relaxation and the solving of core problems," Annals of Operations Research, Springer, vol. 172(1), pages 45-69, November.
    12. Ma, Hong & Miao, Zhaowei & Lim, Andrew & Rodrigues, Brian, 2011. "Crossdocking distribution networks with setup cost and time window constraint," Omega, Elsevier, vol. 39(1), pages 64-72, January.
    13. Sharmistha Halder (Jana) & Biswapati Jana, 2020. "Application of fuzzy programming techniques to solve solid transportation problem with additional constraints," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 30(1), pages 67-84.
    14. Gurwinder Singh & Amarinder Singh, 2021. "Solving fixed-charge transportation problem using a modified particle swarm optimization algorithm," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(6), pages 1073-1086, December.
    15. Sagratella, Simone & Schmidt, Marcel & Sudermann-Merx, Nathan, 2020. "The noncooperative fixed charge transportation problem," European Journal of Operational Research, Elsevier, vol. 284(1), pages 373-382.
    16. A. N. Balaji & J. Mukund Nilakantan & Izabela Nielsen & N. Jawahar & S. G. Ponnambalam, 2019. "Solving fixed charge transportation problem with truck load constraint using metaheuristics," Annals of Operations Research, Springer, vol. 273(1), pages 207-236, February.
    17. Kowalski, Krzysztof & Lev, Benjamin & Shen, Wenjing & Tu, Yan, 2014. "A fast and simple branching algorithm for solving small scale fixed-charge transportation problem," Operations Research Perspectives, Elsevier, vol. 1(1), pages 1-5.
    18. Adlakha, Veena & Kowalski, Krzysztof & Lev, Benjamin, 2010. "A branching method for the fixed charge transportation problem," Omega, Elsevier, vol. 38(5), pages 393-397, October.
    19. V. Adlakha & K. Kowalski, 2015. "Fractional Polynomial Bounds for the Fixed Charge Problem," Journal of Optimization Theory and Applications, Springer, vol. 164(3), pages 1026-1038, March.
    20. Saleem Ramadan & Imad Ramadan, 2012. "Hybrid Two-Stage Algorithm for Solving Transportation Problem," Modern Applied Science, Canadian Center of Science and Education, vol. 6(4), pages 1-12, April.

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