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A simple heuristic for solving small fixed-charge transportation problems
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DOI：10.1016/S0305-0483(03)00025-2.png)
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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. (C) 2003 Elsevier Science Ltd. All rights reserved.
Keyword:
fixed-charge
transportation problem
heuristic algorithm
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