EXACT SOLUTION OF THE FIXED CHARGE TRANSPORTATION PROBLEM

In the fixed charge transportation problem, a fixed charge is associated with each route that can be opened, in the addition to the variable transportation cost proportional to the amount of goods shipped. This paper presents an exact solution of this mixed integer programming problem by decomposing it into a master integer program and a series of transportation subprograms. To reduce the number of vertices that need to be examined, bounds are established on the maximum and minimum values of the total fixed cost, and feasibility conditions for the transportation problem are used extensively. Computational results show the method to be particularly suitable when fixed costs are large compared to variable costs. Computational results are also presented for an algorithm by Murty, and a composite algorithm based on Murty's and the author's results is proposed.

  • Corporate Authors:

    Stanford Research Institute

    333 Ravenswood Avenue
    Menlo Park, CA  United States  94025
  • Authors:
    • GRAY, P
  • Publication Date: 1968-5

Subject/Index Terms

  • Uncontrolled Terms: Price fixing
  • Subject Areas: Aviation; Economics;

Filing Info

  • Accession Number: 00074491
  • Record Type: Publication
  • Source Agency: FLIGHT TRANSPORTATION LABORATORY, MIT DEPT. OF AERONAUTICS AND ASTRONAUTICS
  • Report/Paper Numbers: None
  • Files: TRIS
  • Created Date: Sep 5 1974 12:00AM