A simple heuristic for solving small fixed-charge transportation problems

The fixed-charge transportation problem (FCTP) is an extension of the classical transportation problem in which a fixed cost is incurred, independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The introduction of fixed costs in addition to varia...

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Bibliographic Details
Published in:Omega (Oxford) 2003-06, Vol.31 (3), p.205-211
Main Authors: Adlakha, Veena, Kowalski, Krzysztof
Format: Article
Language:English
Subjects:
Algorithms
Applied sciences
Exact sciences and technology
Fixed-charge
Fixed-charge Transportation problem Heuristic algorithm
Ground, air and sea transportation, marine construction
Heuristic
Heuristic algorithm
Logistics
Mathematical programming
Operational research and scientific management
Operational research. Management science
Studies
Transportation
Transportation planning, management and economics
Transportation problem
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Summary:The fixed-charge transportation problem (FCTP) is an extension of the classical transportation problem in which a fixed cost is incurred, independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The introduction of 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 simple heuristic algorithm for the solution of small fixed-charge problems. We present numerical examples to illustrate applications of the proposed method.
ISSN:0305-0483
1873-5274
DOI:10.1016/S0305-0483(03)00025-2