A simple algorithm for the source-induced fixed-charge transportation problem

V Adlakha () and K Kowalski
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V Adlakha: University of Baltimore
K Kowalski: State of Connecticut

Journal of the Operational Research Society, 2004, vol. 55, issue 12, 1275-1280

Abstract: Abstract The fixed-charge problem is a non-linear programming problem of practical interest in business and industry. The source-induced fixed-charge transportation problem (SIFCTP) is a variation of the regular fixed-charge transportation problem (FCTP) in which a fixed cost is incurred for every supply point that is used in the solution, along with a variable cost that is proportional to the amount shipped. This problem is significantly different from the widely studied FCTP, where a fixed cost is incurred upon activation of a route. The introduction of the 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 computationally simple algorithm for the solution of source-induced fixed-charge problems. The results of empirical tests of the effectiveness of the proposed algorithm are presented.

Keywords: fixed charge; source induced; transportation problem; heuristic algorithm (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/palgrave.jors.2601753

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