A combined heuristic approach to nonlinear fixed-charge capacitated network design problem

Authors

  • Woo-Sik Yoo Incheon National University
  • Jae-Gon Kim Incheon National University
  • Chongman Kim Myongji University

DOI:

https://doi.org/10.23055/ijietap.2016.23.1.2188

Keywords:

network design, heuristic, simulated annealing

Abstract

The nonlinear fixed-charge capacitated network design problem (NFCNDP) is notoriously difficult and there is limited literature addressing this problem although the (linear) fixed-charge capacitated network design problem has been extensively studied. In this article, we propose a new heuristic approach to the NFCNDP. We develop a two-phase heuristic algorithm in which a constructive method is used to obtain an initial solution and the solution is iteratively improved using an improvement method. To overcome the myopia of the heuristic algorithm, we combine it with simulated annealing. Computational experiments are performed on benchmark test sets with convex and concave cost functions. Test results show that the suggested algorithm performs much better than commercial optimization solvers.

Author Biographies

Woo-Sik Yoo, Incheon National University

Professor, Department of Industrial and Management Engineering 

Jae-Gon Kim, Incheon National University

Professor, Department of Industrial and Management Engineering

Chongman Kim, Myongji University

I'm currently working as an Associate Professor in the department of inustrial and management engineering, Myongji University, Korea.

Published

2016-03-24

How to Cite

Yoo, W.-S., Kim, J.-G., & Kim, C. (2016). A combined heuristic approach to nonlinear fixed-charge capacitated network design problem. International Journal of Industrial Engineering: Theory, Applications and Practice, 23(1). https://doi.org/10.23055/ijietap.2016.23.1.2188

Issue

Section

Logistics and Material Handling