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New approach to fixed charges problems (FCP)
Journal article   Peer reviewed

New approach to fixed charges problems (FCP)

Krzysztof Kowalski and Benjamin Lev
International journal of management science and engineering management, v 2(1), pp 75-80
01 Jan 2007

Abstract

Operations Research & Management Science Science & Technology Technology
This paper introduces a new formulation for problems with fixed charges, such as knapsack and fixed charge linear programming problems (including transportation type), which until now have been treated as pure 0-1 integer, or mixed integer problems. In this paper the objective function is presented in a modified form, which is based on the number of fixed charges. The problems are defined in a novel way paving the way for better understanding of the local and global minima phenomena. Finally computational benefits of the formulation and a numerical example are shown.

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