Fixed-Charge Network Design Problems

Teodor Gabriel Crainic (), Michel Gendreau () and Bernard Gendron ()
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Teodor Gabriel Crainic: Université du Québec à Montréal
Michel Gendreau: Polytechnique Montréal
Bernard Gendron: Université de Montréal

Chapter Chapter 2 in Network Design with Applications to Transportation and Logistics, 2021, pp 15-28 from Springer

Abstract: Abstract This chapter introduces problems and models that involve design decisions captured with arc-based binary variables that typically model fixed costs. We distinguish whether the demand can be represented as a single commodity or as multiple commodities, whether or not there are capacities, and whether or not there are variable transportation costs in the objective function, in addition to the fixed design costs. These characteristics yield different variants of network design problems and models, with various degrees of complexity. We identify a few basic modeling approaches in network design, including the use of path flow variables instead of arc flow variables, and the derivation of cut-set-based inequalities.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-64018-7_2

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DOI: 10.1007/978-3-030-64018-7_2

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