The Fixed Charge Transportation Problem (FCTP) is a generalization of the well-known Transportation Problem, where the cost for sending goods from origins to destinations is composed of a fixed cost and a continuous cost proportional to the amount of goods sent. In practical applications, the fixed costs may represent toll charges on highways, landing fees at airports, setup costs in production...

This paper presents a branching method for the solution of the fixed charge transportation problem. Starting with a linear formulation of the problem, we develop the method which converges to the optimal solution. The method is based on the computation of a lower bound and an upper bound embedded within a branching process. We present a detailed numerical example to illustrate the proposed meth...

The fixed-charge transportation problem is a fixed-charge network flow problem on a bipartite graph. This problem appears as a subproblem in many hard transportation problems, and is also both a special case and a strong relaxation of the challenging bigbucket multi-item lot-sizing problem. In this paper, we provide a polyhedral analysis of the polynomially solvable special case in which the as...

—Competitive global markets oblige the firms to reduce their overall costs while maintaining the same customer service level and this can be achieved just through a precise and efficient management of their supply chain network. The Fixed Charge Transportation Problem (FCTP) which is a more comprehensive type of Transportation Problem (TP) has several applications from different aspects in this...

Given a directed network, the uncapacitated fixed-charge network flow problem is to find a minimum-cost arc combination that provides flows from the supply nodes to the demand nodes. Associated with all arcs are two costs: the fixed charge of using the arc and the variable cost depending on the amount of flow the arc actually carries. This generic model has applications for problems of distribu...

In this paper the Fixed Charge Transportation Problem is considered. A new heuristic approach is proposed, based on the intensive use of Lagrangean relaxation techniques. The more novel aspects of this approach are new Lagrangean relaxation and decomposition methods, the consideration of several core problems, defined from the previously computed Lagrangean reduced costs, the heuristic selectio...

This paper discusses a paradox in fixed charge capacitated transportation problem where the objective function is the sum of two linear fractional functions consisting of variables costs and fixed charges respectively. A paradox arises when the transportation problem admits of an objective function value which is lower than the optimal objective function value, by transporting larger quantities...