A simple heuristic for solving small fixed-charge transportation problems

Veena Adlakha and Krzysztof Kowalski

Omega, 2003, vol. 31, issue 3, 205-211

Abstract: The fixed-charge transportation problem (FCTP) is an extension of the classical transportation problem in which a fixed cost is incurred, independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The introduction of fixed costs in addition to variable costs results in the objective function being a step function. Therefore, fixed-charge problems are usually solved using sophisticated analytical or computer software. This paper deviates from that approach. It presents a simple heuristic algorithm for the solution of small fixed-charge problems. We present numerical examples to illustrate applications of the proposed method.

Keywords: Fixed-charge; Transportation; problem; Heuristic; algorithm (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (20)

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