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Exact and Heuristic Solutions for a Shipment Problem with Given Frequencies

  • Luca Bertazzi

    ()

    (Dipartimento di Metodi Quantitativi, University of Brescia, Italy)

  • Maria Grazia Speranza

    ()

    (Dipartimento di Metodi Quantitativi, University of Brescia, Italy)

  • Walter Ukovich

    ()

    (Dipartimento di Elettrotecnica, Elettronica ed Informatica, University of Trieste, Italy)

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    We consider the problem of shipping several products from an origin to a destination when a discrete set of shipping frequencies is available, in such a way that the sum of the transportation and inventory costs is minimized. This problem, which is known to be NP-hard, has applications in transportation planning and in location analysis. In this paper we derive dominance rules for the problem solutions that allow a tightening of the bounds on the problem variables and improve the efficiency of a known branch-and-bound algorithm. Moreover, we present some heuristics and compare them with two different modifications of an EOQ-type algorithm for the solution of the problem with continuous frequencies.

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    File URL: http://dx.doi.org/10.1287/mnsc.46.7.973.12032
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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 46 (2000)
    Issue (Month): 7 (July)
    Pages: 973-988

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    Handle: RePEc:inm:ormnsc:v:46:y:2000:i:7:p:973-988
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