A Branch-and-Price Algorithm for the Multiperiod Single-Sourcing Problem

Richard Freling, H. Edwin Romeijn (), Dolores Romero Morales () and Albert P. M. Wagelmans ()
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Richard Freling: Formerly with Econometric Institute, Erasmus University Rotterdam, Rotterdam, The Netherlands, and ORTEC Consultants B.V., Gouda, The Netherlands
H. Edwin Romeijn: Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611-6595
Dolores Romero Morales: Saïd Business School, University of Oxford, Oxford OX 1HP, United Kingdom
Albert P. M. Wagelmans: Econometric Institute, Erasmus University Rotterdam, 3000 DR Rotterdam, The Netherlands

Operations Research, 2003, vol. 51, issue 6, 922-939

Abstract: In this paper, we propose a multiperiod single-sourcing problem (MPSSP), which takes both transportation and inventory into consideration, suitable for evaluating the performance of a logistics distribution network in a dynamic environment. We reformulate the MPSSP as a Generalized Assignment Problem (GAP) with a convex objective function. We then extend a branch-and-price algorithm that was developed for the GAP to this problem. The pricing problem is a so-called Penalized Knapsack Problem (PKP), which is a knapsack problem where the objective function includes an additional convex term penalizing the total use of capacity of the knapsack. The optimal solution of the relaxation of the integrality constraints in the PKP shows a similar structure to the optimal solution of the knapsack problem, that allows for an efficient solution procedure for the pricing problem. We perform an extensive numerical study of the branch-and-price algorithm.

Keywords: Production/distribution: integrating production distribution and inventory; Integer programming: branch-and-price algorithm and penalized knapsack problem (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (8)

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