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A Lagrangian Heuristic Based Branch-and-Bound Approach for the Capacitated Network Design Problem

Author

Listed:
  • Kaj Holmberg

    (Department of Mathematics, Linköping Institute of Technology S-581 83 Linköping, Sweden)

  • Di Yuan

    (Department of Mathematics, Linköping Institute of Technology S-581 83 Linköping, Sweden)

Abstract

The capacitated network design problem is a multicommodity minimal cost network flow problem with fixed charges on the arcs and is well known to be NP-hard. The problem type is very common in the context of transportation networks, telecommunication networks, etc. In this paper we propose an efficient method for this problem, based on a Lagrangian heuristic within a branch-and-bound framework. The Lagrangian heuristic uses a Lagrangian relaxation to obtain easily solved subproblems and solves the Lagrangian dual by subgradient optimization. It also includes techniques for finding primal feasible solutions. The Lagrangian heuristic is then embedded into a branch-and-bound scheme that yields further primal improvements. Special penalty tests and cutting criteria are developed. The branch-and-bound scheme can either be an exact method that guarantees the optimal solution of the problem or be a quicker heuristic. The method has been tested on networks of various structures and sizes. Computational comparisons between this method and a state-of-the-art mixed-integer code are presented. The method is found to be capable of generating good feasible solutions to large-scale problems within reasonable time and data storage limits.

Suggested Citation

  • Kaj Holmberg & Di Yuan, 2000. "A Lagrangian Heuristic Based Branch-and-Bound Approach for the Capacitated Network Design Problem," Operations Research, INFORMS, vol. 48(3), pages 461-481, June.
    • Handle: RePEc:inm:oropre:v:48:y:2000:i:3:p:461-481
    DOI: 10.1287/opre.48.3.461.12439
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    References listed on IDEAS

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    1. T. L. Magnanti & R. T. Wong, 1984. "Network Design and Transportation Planning: Models and Algorithms," Transportation Science, INFORMS, vol. 18(1), pages 1-55, February.
    2. Kaj Holmberg & Johan Hellstrand, 1998. "Solving the Uncapacitated Network Design Problem by a Lagrangean Heuristic and Branch-and-Bound," Operations Research, INFORMS, vol. 46(2), pages 247-259, April.
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    4. A. Balakrishnan & T. L. Magnanti & R. T. Wong, 1989. "A Dual-Ascent Procedure for Large-Scale Uncapacitated Network Design," Operations Research, INFORMS, vol. 37(5), pages 716-740, October.
    5. Bruce W. Lamar & Yosef Sheffi & Warren B. Powell, 1990. "A Capacity Improvement Lower Bound for Fixed Charge Network Design Problems," Operations Research, INFORMS, vol. 38(4), pages 704-710, August.
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