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The fixed charge problem

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  • David I. Steinberg

Abstract

The fixed charge problem is a nonlinear programming problem of practical interest in business and industry. Yet, until now no computationally feasible exact method of solution for large problems had been developed. In this paper an exact algorithm is presented which is computationally feasible for large problems. The algorithm is based upon a branch and bound approach, with the additional feature that the amount of computer storage required remains constant throughout (for a problem of any given size). Also presented are three suboptimal heuristic algorithms which are of interest because, although they do not guarantee that the true optimal solution will be found, they usually yield very good solutions and are extremely rapid techniques. Computational results are described for several of the heuristic methods and for the branch and bound algorithm.

Suggested Citation

  • David I. Steinberg, 1970. "The fixed charge problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 17(2), pages 217-235, June.
    • Handle: RePEc:wly:navlog:v:17:y:1970:i:2:p:217-235
    DOI: 10.1002/nav.3800170209
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    Cited by:

    1. Bala Shetty, 1990. "A relaxation/decomposition algorithm for the fixed charged network problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(2), pages 327-340, April.
    2. Alexey Sorokin & Vladimir Boginski & Artyom Nahapetyan & Panos M. Pardalos, 2013. "Computational risk management techniques for fixed charge network flow problems with uncertain arc failures," Journal of Combinatorial Optimization, Springer, vol. 25(1), pages 99-122, January.
    3. Jesús Sáez Aguado, 2009. "Fixed Charge Transportation Problems: a new heuristic approach based on Lagrangean relaxation and the solving of core problems," Annals of Operations Research, Springer, vol. 172(1), pages 45-69, November.
    4. Gurwinder Singh & Amarinder Singh, 2021. "Solving fixed-charge transportation problem using a modified particle swarm optimization algorithm," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(6), pages 1073-1086, December.

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