Abstract

The dynamic slope scaling procedure (DSSP) is an efficient heuristic algorithm that provides good solutions to the fixed-charge transportation or network flow problem. However, the procedure is graphically motivated and appears unrelated to other optimization techniques. In this paper, we formulate the fixed-charge problem as a mathematical program with complementarity constraints (MPCC) and show that DSSP is equivalent to solving MPCC using Lagrangian relaxation with subproblem approximation.

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