Abstract
We propose to strengthen the separable Lagrangean relaxation of the Simple Plant Location Problem (SPLP) by using Benders inequalities generated during a Lagrangean dual ascent procedure. These inequalities are expressed in terms of the 0–1 variables only, and they can be used as knapsack constraints in the pure integer part of the Lagrangean relaxation. We show how coupling this technique with a good primal heuristic can substantially reduce integrality gaps.
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