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Fixed-Charge Network Design Problems

In: Network Design with Applications to Transportation and Logistics

Author

Listed:
  • Teodor Gabriel Crainic

    (Université du Québec à Montréal)

  • Michel Gendreau

    (Polytechnique Montréal)

  • Bernard Gendron

    (Université de Montréal)

Abstract

This chapter introduces problems and models that involve design decisions captured with arc-based binary variables that typically model fixed costs. We distinguish whether the demand can be represented as a single commodity or as multiple commodities, whether or not there are capacities, and whether or not there are variable transportation costs in the objective function, in addition to the fixed design costs. These characteristics yield different variants of network design problems and models, with various degrees of complexity. We identify a few basic modeling approaches in network design, including the use of path flow variables instead of arc flow variables, and the derivation of cut-set-based inequalities.

Suggested Citation

  • Teodor Gabriel Crainic & Michel Gendreau & Bernard Gendron, 2021. "Fixed-Charge Network Design Problems," Springer Books, in: Teodor Gabriel Crainic & Michel Gendreau & Bernard Gendron (ed.), Network Design with Applications to Transportation and Logistics, chapter 0, pages 15-28, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-64018-7_2
    DOI: 10.1007/978-3-030-64018-7_2
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    Cited by:

    1. Crainic, Teodor Gabriel & Gendron, Bernard & Akhavan Kazemzadeh, Mohammad Rahim, 2022. "A taxonomy of multilayer network design and a survey of transportation and telecommunication applications," European Journal of Operational Research, Elsevier, vol. 303(1), pages 1-13.

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