Approximation Algorithms for the Single-Warehouse Multi-Retailer Problem With Piecewise Linear Cost Structures1
نویسندگان
چکیده
Recently, Chan et al. (2000) proposed an efficient heuristic for a class of finite time planning horizon single-warehouse multi-retailer system with complex (nonlinear) transportation cost structures. Their heuristic is based on solving a large LP relaxation of the underlying problem. In this paper, we analyze the strength of the proposed LP relaxation and show that it attains the best theoretical lower bound for the one-warehouse multi-retailer problem. This explains partially the excellent computational results being observed for the LP-based heuristic. The analysis is based on randomized rounding analysis, and a novel way to approximate piecewise linear concave cost function.
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