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The interactive fixed charge linear programming problem

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  • S. Selcuk Erenguc
  • Harold P. Benson

Abstract

In many decision‐making situations, each activity that can be undertaken may have associated with it both a fixed and a variable cost. Recently, we have encountered serveral practical problems in which the fixed cost of undertaking an activity depends upon which other activities are also undertaken. To our knowledge, no existing optimization model can accomodate such a fixed cost structure. To do so, we have therefore developed a new model called the interactive fixed charge linear programming problem (IFCLP). In this paper we present and motivate problem (IFCLP), study some of its characteristics, and present a finite branch and bound algorithm for solving it. We also discuss the main properties of this algorithm.

Suggested Citation

  • S. Selcuk Erenguc & Harold P. Benson, 1986. "The interactive fixed charge linear programming problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 33(2), pages 157-177, May.
    • Handle: RePEc:wly:navlog:v:33:y:1986:i:2:p:157-177
    DOI: 10.1002/nav.3800330202
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    Cited by:

    1. S. Selcuk Erenguc, 1988. "Multiproduct dynamic lot‐sizing model with coordinated replenishments," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(1), pages 1-22, February.
    2. Meltem Denizel & S. Selcuk Erenguc & Hanif D. Sherali, 1996. "Convex envelope results and strong formulations for a class of mixed‐integer programs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(4), pages 503-518, June.
    3. Harold P. Benson & S. Selcuk Erenguc, 1990. "An algorithm for concave integer minimization over a polyhedron," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(4), pages 515-525, August.
    4. Reiner Horst, 1990. "Deterministic methods in constrained global optimization: Some recent advances and new fields of application," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(4), pages 433-471, August.
    5. Kurt M. Bretthauer & A. Victor Cabot & M. A. Venkataramanan, 1994. "An algorithm and new penalties for concave integer minimization over a polyhedron," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(3), pages 435-454, April.
    6. S. Selcuk Erenguc & H. Murat Mercan, 1990. "A multifamily dynamic lot‐sizing model with coordinated replenishments," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(4), pages 539-558, August.

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