On approximation of the fixed charge transportation problem

Veena Adlakha, Krzysztof Kowalski, Simi Wang, Benjamin Lev and Wenjing Shen

Omega, 2014, vol. 43, issue C, 64-70

Abstract: In this paper we present a new approximation for computing lower bound for the fixed charge transportation problem (FCTP). The lower bounds thus generated delivered 87% optimal solutions for 56 randomly generated small, up to 6×10 in size, problems in an experimental design. For somewhat larger, 10×10 and 10×15 size problems, the lower bounds delivered an average error of 5%, approximately, using a fraction of CPU times as compared to CPLEX to solve these problems. The proposed lower bound may be used as a superior initial solution with any other existing branch-and-bound method or tabu search heuristic procedure to enhance convergence to the optimal solution for large size problems which cannot be solved by CPLEX due to time constraints.

Keywords: Transportation; Fixed charge; Lower bound approximation; Branch-and-bound (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.omega.2013.06.005

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