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Technical Note—Exact Solution of the Fixed-Charge Transportation Problem

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  • Paul Gray

    (Georgia Institute of Technology, Atlanta, Georgia)

Abstract

In the fixed-charge transportation problem, a fixed charge is associated with each route that can be opened, in addition to the variable transportation cost proportional to the amount of goods shipped- This note presents an exact solution of this mixed integer programming problem by decomposing it into a master integer program and a series of transportation subprograms. To reduce the number of vertices that need to be examined, bounds are established on the maximum and minimum values of the total fixed cost, and feasibility conditions for the transportation problem are used extensively. Computational results show the method to be particularly suitable when fixed costs are large compared to variable costs. A composite algorithm based on Murty's and the author's results is proposed.

Suggested Citation

  • Paul Gray, 1971. "Technical Note—Exact Solution of the Fixed-Charge Transportation Problem," Operations Research, INFORMS, vol. 19(6), pages 1529-1538, October.
    • Handle: RePEc:inm:oropre:v:19:y:1971:i:6:p:1529-1538
    DOI: 10.1287/opre.19.6.1529
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    Cited by:

    1. Bertazzi, Luca & Maggioni, Francesca, 2018. "A stochastic multi-stage fixed charge transportation problem: Worst-case analysis of the rolling horizon approach," European Journal of Operational Research, Elsevier, vol. 267(2), pages 555-569.
    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. 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. 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.

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