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Nonlinear 0-1 knapsack problem with capacity selection

Sachin Jayaswal

No WP2016-03-10, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: We study a nonlinear 0-1 knapsack problem with capacity selection decision, as it arises as a part of facility location/service system design problems with congestion. The capacity selection decision gives rise to a non-convex objective function. We present two cutting plane based solution approaches: one based on Generalized Benders decomposition based, and the other based on a reformulation of the problem using additional auxiliary variables, followed by outer linearization of a resulting simple concave func- tion in the constraint.

Date: 2016-03-07
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