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An approximate solution method for the fixed charge problem

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  • L. Cooper
  • C. Drebes

Abstract

In the absence, to date, of an exact method for solving the linear programming problem with fixed charges, two heuristic methods have been proposed and extensively investigated, computationally, for moderate sized problems. The results indicate that the heuristic methods produce optimal solutions in well over 90 percent of the several hundred problems investigated and very close to optimal (a few percent) in the remaining cases. Hence it should be of practical significance to practitioners in the field.

Suggested Citation

  • L. Cooper & C. Drebes, 1967. "An approximate solution method for the fixed charge problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(1), pages 101-113.
    • Handle: RePEc:wly:navlog:v:14:y:1967:i:1:p:101-113
    DOI: 10.1002/nav.3800140110
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    Cited by:

    1. Lev, Benjamin & Kowalski, Krzysztof, 2011. "Modeling fixed-charge problems with polynomials," Omega, Elsevier, vol. 39(6), pages 725-728, December.
    2. Yixin Zhao & Torbjörn Larsson & Elina Rönnberg & Panos M. Pardalos, 2018. "The fixed charge transportation problem: a strong formulation based on Lagrangian decomposition and column generation," Journal of Global Optimization, Springer, vol. 72(3), pages 517-538, November.
    3. Bala Shetty, 1990. "A relaxation/decomposition algorithm for the fixed charged network problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(2), pages 327-340, April.
    4. Alexey Sorokin & Vladimir Boginski & Artyom Nahapetyan & Panos M. Pardalos, 2013. "Computational risk management techniques for fixed charge network flow problems with uncertain arc failures," Journal of Combinatorial Optimization, Springer, vol. 25(1), pages 99-122, January.
    5. 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.

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