Abstract
This work extends the theory of the fixed charge transportation problem (FCTP), currently based mostly on a forty-year-old publication by Hirsch and Danzig. This paper presents novel properties that need to be considered by those using existing, or those developing new methods for optimizing FCTP. It also defines the problem in an easier way, making it understandable to a wider spectrum of readers. While the analysis is limited to FCTP only, elements of it can easily be extended to the general fixed charge problem. Finally a novel, snap method for finding global minima for FCTPs with large fixed charge coefficients is introduced.
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