The Solution of Multiperiod Network Models with Bundle Constraints by Aggregation

Rotimi S. Aderohunmu and Jay E. Aronson
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Rotimi S. Aderohunmu: School of Management, State University of New York at Binghamton, Binghamton, New York 13901
Jay E. Aronson: Terry College of Business, University of Georgia, Brooks Hall, Athens, Georgia 30602

Management Science, 1993, vol. 39, issue 1, 54-71

Abstract: We present a new network aggregation/disaggregation approach for solving a multiperiod, network model with bundle (Generalized Upper Bounding) side constraints. The model describes production planning and distribution problems. Instead of solving the original multicommodity problem, we transform it so that a pair of single-commodity network flow problems can be solved. The original network is aggregated and the resulting problem is solved. Its solution determines a disaggregated problem that yields a feasible, near optimal solution to the original problem. We describe the determination of theoretical a priori and a posteriori bounds. We also introduce a very tight "computational" error bound. The implementation of the algorithm was tested against MPSX/370, and the specialized code for solving networks with side constraints NETSIDE. The proposed solution method was found to be much more efficient with negligible error.

Keywords: networks/graphs: flow algorithms; multicommodity; applications; aggregation; production scheduling; inventory production: production smoothing (search for similar items in EconPapers)
Date: 1993
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