Fixed Charge Transportation Problems: a new heuristic approach based on Lagrangean relaxation and the solving of core problems

Jesús Sáez Aguado ()

Annals of Operations Research, 2009, vol. 172, issue 1, 45-69

Abstract: In this paper the Fixed Charge Transportation Problem is considered. A new heuristic approach is proposed, based on the intensive use of Lagrangean relaxation techniques. The more novel aspects of this approach are new Lagrangean relaxation and decomposition methods, the consideration of several core problems, defined from the previously computed Lagrangean reduced costs, the heuristic selection of the most promising core problem and the final resort to enumeration by applying a branch and cut algorithm to the selected core problem. For problems with a small ratio of the average fixed cost to the average variable cost (lower than or equal to 25), the proposed method can obtain similar or better solutions than the state-of-art algorithms, such as the tabu search procedure and the parametric ghost image processes. For larger ratios (between 50 and 180), the quality of the obtained solutions could be considered to be halfway between both methods. Copyright Springer Science+Business Media, LLC 2009

Keywords: Transportation problem; Fixed costs; Heuristics; Integer programming; Lagrangean relaxation; Core problem (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10479-008-0483-2

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