FEASIBLE REGION REDUCTION CUTS FOR THE SIMPLE PLANT LOCATION PROBLEM

Abstract

We introduce a conceptually new method of generating strong cuts for the simple plant location problem. Based on the simple structure of the problem, we generate inequalities which even cut off part of the integer feasible region but still provide valid and sharp lower bounds of the problem when added to its linear programming relaxation. Also shown is the relation between such inequalities and the conventional valid inequalities of the problem.