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Inverse Optimization: An Application to the Capacitated Plant Location Problem

Author

Listed:
  • Gabriel R. Bitran

    (Massachusetts Institute of Technology)

  • Vijaya Chandru

    (Massachusetts Institute of Technology)

  • Dorothy E. Sempolinski

    (Corning Glass Works, Corning, New York)

  • Jeremy F. Shapiro

    (Massachusetts Institute of Technology)

Abstract

Lagrangean techniques have had wide application to the optimization of discrete optimization problems. Inverse optimization refers to the fact that each time a Lagrangean calculation is made for a specific problem with a given resources vector, an optimal solution is obtained for a related problem with a suitably adjusted resources vector. This property is studied in depth for the capacitated plant location problem and new parametric methods for that problem are suggested. Computational experience is reported.

Suggested Citation

  • Gabriel R. Bitran & Vijaya Chandru & Dorothy E. Sempolinski & Jeremy F. Shapiro, 1981. "Inverse Optimization: An Application to the Capacitated Plant Location Problem," Management Science, INFORMS, vol. 27(10), pages 1120-1141, October.
    • Handle: RePEc:inm:ormnsc:v:27:y:1981:i:10:p:1120-1141
    DOI: 10.1287/mnsc.27.10.1120
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    Citations

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    Cited by:

    1. Sune Lauth Gadegaard & Andreas Klose & Lars Relund Nielsen, 2018. "An improved cut-and-solve algorithm for the single-source capacitated facility location problem," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 6(1), pages 1-27, March.
    2. Torbjörn Larsson & Nils-Hassan Quttineh & Ida Åkerholm, 2024. "A Lagrangian bounding and heuristic principle for bi-objective discrete optimization," Operational Research, Springer, vol. 24(2), pages 1-34, June.
    3. Kang, Jae-Hun & Kim, Yeong-Dae, 2012. "Inventory control in a two-level supply chain with risk pooling effect," International Journal of Production Economics, Elsevier, vol. 135(1), pages 116-124.
    4. Gavish, Bezalel, 1997. "Low earth orbit satellite based communication systems -- Research opportunities," European Journal of Operational Research, Elsevier, vol. 99(1), pages 166-179, May.
    5. Zhaoyang Duan & Lizhi Wang, 2011. "Heuristic algorithms for the inverse mixed integer linear programming problem," Journal of Global Optimization, Springer, vol. 51(3), pages 463-471, November.

    More about this item

    Keywords

    programming: integer algorithms;

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