Selection of Capacity Expansion Projects
作者:
LeeHochang,
GuignardMonique,
期刊:
Journal of the Operational Research Society
(Taylor Available online 1995)
卷期:
Volume 46,
issue 12
页码: 1418-1432
ISSN:0160-5682
年代: 1995
DOI:10.1057/jors.1995.203
出版商: Taylor&Francis
关键词: capacity expansion;integer programming;lagrangean relaxation
数据来源: Taylor
摘要:
AbstractThe problem of determining a project selection schedule and a production-distribution-inventory schedule for each of a number of plants so as to meet the demands of multiregional markets at minimum discounted total cost during a discrete finite planning horizon is considered. We include the possibility of using inventory and/or imports to delay the expansion decision at each producing region in a transportation network. Through a problem reduction algorithm, the Lagrangean relaxation problem strengthened by the addition of a surrogate constraint becomes a 0–1 mixed integer knapsack problem. Its optimal solution, given a set of Lagrangean multipliers, can be obtained by solving at most two generally smaller 0–1 pure integer knapsack problems. The bound is usually very tight. At each iteration of the subgradient method, we generate a primal feasible solution from the Lagrangean solution. The computational results indicate that the procedure is effective in solving large problems to within acceptable error tolerances.
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