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Fixed-Charge Transportation Problem: Facets of the Projection Polyhedron

Author

Listed:
  • Yogesh Agarwal

    (Indian Institute of Management, Lucknow 226 013, Uttar Pradesh, India)

  • Yash Aneja

    (Odette School of Business, University of Windsor, Windsor, Ontario N9B 3P4, Canada)

Abstract

In this paper we consider the well-known fixed-charge transportation problem. To send any flow from source s i to destination t j , we incur a unit variable shipping cost of c ij and a fixed cost f ij . Here we study the structure of the projection polyhedron of this problem, in the space of 0-1 variables associated with fixed charges, and we develop several classes of valid inequalities and derive conditions under which they are facet defining. In some cases, if the conditions are not satisfied, we show how they can be lifted to define facets. Several heuristics for generating and adding these facets are presented. Using these results, we develop a computationally effective algorithm for solving the problem. The computational results clearly indicate the usefulness of this approach.

Suggested Citation

  • Yogesh Agarwal & Yash Aneja, 2012. "Fixed-Charge Transportation Problem: Facets of the Projection Polyhedron," Operations Research, INFORMS, vol. 60(3), pages 638-654, June.
  • Handle: RePEc:inm:oropre:v:60:y:2012:i:3:p:638-654
    DOI: 10.1287/opre.1120.1041
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    References listed on IDEAS

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    Cited by:

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    3. Sagratella, Simone & Schmidt, Marcel & Sudermann-Merx, Nathan, 2020. "The noncooperative fixed charge transportation problem," European Journal of Operational Research, Elsevier, vol. 284(1), pages 373-382.
    4. Xu, Dongyang & Li, Kunpeng & Zou, Xuxia & Liu, Ling, 2017. "An unpaired pickup and delivery vehicle routing problem with multi-visit," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 218-247.
    5. Agarwal, Y.K. & Aneja, Y.P., 2017. "Fixed charge multicommodity network design using p-partition facets," European Journal of Operational Research, Elsevier, vol. 258(1), pages 124-135.
    6. 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.
    7. 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.
    8. Aristide Mingozzi & Roberto Roberti, 2018. "An Exact Algorithm for the Fixed Charge Transportation Problem Based on Matching Source and Sink Patterns," Transportation Science, INFORMS, vol. 52(2), pages 229-238, March.

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