Abstract
Abstract This paper considers the use of local optimization or improvement heuristics on the Steiner problem in graphs. By considering any Steiner tree as a disjoint union of paths we show it is possible to define a neighbourhood structure on the set of feasible solutions which can be used in a k-opt exchange heuristic. These ideas are then extended to a simulated annealing method. Computational experience, comparing these new methods with one of the best existing heuristics is presented.
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