A Network Augmenting Path Basis Algorithm for Transshipment Problems

Abstract

The purpose of this paper is to present a new simplex algorithm for solving capacitated transshipment network problems which both circumvents and exploits the pervasive degeneracy in such problems. This generalized alternating path algorithm is based on the characterization of a special subset of the bases that are capable of leading to an optimal solution. With consideration restricted to these bases, fewer alternative representations of a given extreme point are inspected. The impact on the number of degenerate pivots and problem solution times is demonstrated by computational testing and comparison with other approaches.