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More-for-less algorithm for fixed-charge transportation problems

Author

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  • Adlakha, Veena
  • Kowalski, Krzysztof
  • Vemuganti, R.R.
  • Lev, Benjamin

Abstract

The more-for-less (MFL) phenomenon in distribution problems occurs when it is possible to ship more total goods for less (or equal) total cost, while shipping the same quantity or more from each origin and to each destination. This paradox occurs often in fixed-charge transportation problems (FCTPs), and further analysis could bring significant reduction in costs. The MFL phenomenon for FCTPs has received minimal attention in the literature despite the fact that existing analytical algorithms, such as branch and bound, are limited to small problems due to excessive computational effort. In this paper, we develop a simple heuristic algorithm to identify the demand destinations and the supply points to ship MFL in FCTPs. The proposed method builds upon any existing basic feasible solution. It is easy to implement and can serve as an effective tool for managers for solving the more-for-less paradox for large distribution problems.

Suggested Citation

  • Adlakha, Veena & Kowalski, Krzysztof & Vemuganti, R.R. & Lev, Benjamin, 2007. "More-for-less algorithm for fixed-charge transportation problems," Omega, Elsevier, vol. 35(1), pages 116-127, February.
    • Handle: RePEc:eee:jomega:v:35:y:2007:i:1:p:116-127
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    References listed on IDEAS

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    1. Adlakha, Veena & Kowalski, Krzysztof, 1999. "On the fixed-charge transportation problem," Omega, Elsevier, vol. 27(3), pages 381-388, June.
    2. Adlakha, Veena & Kowalski, Krzysztof, 2000. "A note on the procedure MFL for a more-for-less solution in transportation problems," Omega, Elsevier, vol. 28(4), pages 481-483, August.
    3. Charnes, A. & Duffuaa, S. & Ryan, M., 1987. "The more-for-less paradox in linear programming," European Journal of Operational Research, Elsevier, vol. 31(2), pages 194-197, August.
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    Cited by:

    1. Arsham, Hossein & Adlakha, Veena & Lev, Benjamin, 2009. "A simplified algebraic method for system of linear inequalities with LP applications," Omega, Elsevier, vol. 37(4), pages 876-882, August.
    2. Kowalski, Krzysztof & Lev, Benjamin, 2008. "On step fixed-charge transportation problem," Omega, Elsevier, vol. 36(5), pages 913-917, October.
    3. Balakrishnan, Jaydeep & Hung Cheng, Chun, 2009. "The dynamic plant layout problem: Incorporating rolling horizons and forecast uncertainty," Omega, Elsevier, vol. 37(1), pages 165-177, February.
    4. 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.
    5. 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.
    6. Dalalah, Doraid & Lev, Benjamin, 2009. "Duality of the improved algebraic method (DIAM)," Omega, Elsevier, vol. 37(5), pages 1027-1035, October.
    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. 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.
    9. Zhang, Jiayuan & Yalcin, Mehmet G. & Hales, Douglas N., 2021. "Elements of paradoxes in supply chain management literature: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 232(C).
    10. 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.
    11. Jeffery L. Kennington & Charles D. Nicholson, 2010. "The Uncapacitated Time-Space Fixed-Charge Network Flow Problem: An Empirical Investigation of Procedures for Arc Capacity Assignment," INFORMS Journal on Computing, INFORMS, vol. 22(2), pages 326-337, May.
    12. 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.

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