Modeling and Solving the Capacitated Network Loading Problem

This paper studies a topical and economically significant capacitated network design problem that arises in the telecommunications industry. In this problem, given point-topoint demand between various pairs of nodes of a network must be met by installing (loading) capacitated facilities on the arcs. The facilities are chosen from a small set of alternatives and loading a particular facility incurs an arc specific and facility dependent cost. The problem is to determine the configuration of facilities to be loaded on the arcs of the network that will satisfy the given demand at minimum cost. Since we need to install (load) facilities to carry the required traffic, we refer to the problem as the network loading problem. In this paper, we develop modeling and solution approaches for the problem. We consider two approaches for solving the underlying mixed integer programming model: (i) a Lagrangian relaxation strategy, and (ii) a cutting plane approach that uses three classes of valid inequalities that we identify for the problem. In particular, we show that a linear programming formulation that includes the valid inequalities always approximates the value of the mixed integer program at least as well as the Lagrangian relaxation bound (as measured by the gaps in the objective functions). We also examine the computational effectiveness of these inequalities on a set of prototypical telecommunications data. The computational results show that the addition of these inequalities considerably improves the gap between the integer programming formulation of the problem and its linear programming relaxation: for 6 - 15 node problems from an average of 25% to an average of 8%. These results show that strong cutting planes can be an effective modeling and algorithmic tool for solving problems of the size that arise in the telecommunications industry

On the use of biased-randomized algorithms for solving non-smooth optimization problems

Soft constraints are quite common in real-life applications. For example, in freight transportation, the fleet size can be enlarged by outsourcing part of the distribution service and some deliveries to customers can be postponed as well; in inventory management, it is possible to consider stock-outs generated by unexpected demands; and in manufacturing processes and project management, it is frequent that some deadlines cannot be met due to delays in critical steps of the supply chain. However, capacity-, size-, and time-related limitations are included in many optimization problems as hard constraints, while it would be usually more realistic to consider them as soft ones, i.e., they can be violated to some extent by incurring a penalty cost. Most of the times, this penalty cost will be nonlinear and even noncontinuous, which might transform the objective function into a non-smooth one. Despite its many practical applications, non-smooth optimization problems are quite challenging, especially when the underlying optimization problem is NP-hard in nature. In this paper, we propose the use of biased-randomized algorithms as an effective methodology to cope with NP-hard and non-smooth optimization problems in many practical applications. Biased-randomized algorithms extend constructive heuristics by introducing a nonuniform randomization pattern into them. Hence, they can be used to explore promising areas of the solution space without the limitations of gradient-based approaches, which assume the existence of smooth objective functions. Moreover, biased-randomized algorithms can be easily parallelized, thus employing short computing times while exploring a large number of promising regions. This paper discusses these concepts in detail, reviews existing work in different application areas, and highlights current trends and open research lines

The two-echelon capacitated vehicle routing problem: models and math-based heuristics

Multiechelon distribution systems are quite common in supply-chain and logistics. They are used by public administrations in their transportation and traffic planning strategies, as well as by companies, to model own distribution systems. In the literature, most of the studies address issues relating to the movement of flows throughout the system from their origins to their final destinations. Another recent trend is to focus on the management of the vehicle fleets required to provide transportation among different echelons. The aim of this paper is twofold. First, it introduces the family of two-echelon vehicle routing problems (VRPs), a term that broadly covers such settings, where the delivery from one or more depots to customers is managed by routing and consolidating freight through intermediate depots. Second, it considers in detail the basic version of two-echelon VRPs, the two-echelon capacitated VRP, which is an extension of the classical VRP in which the delivery is compulsorily delivered through intermediate depots, named satellites. A mathematical model for two-echelon capacitated VRP, some valid inequalities, and two math-heuristics based on the model are presented. Computational results of up to 50 customers and four satellites show the effectiveness of the methods developed

A two-stage stochastic transportation problem with fixed handling costs and a priori selection of the distribution channels

In this paper, a transportation problem comprising stochastic demands, fixed handling costs at the origins, and fixed costs associated with the links is addressed. It is assumed that uncertainty is adequately captured via a finite set of scenarios. The problem is formulated as a two-stage stochastic program. The goal is to minimize the total cost associated with the selected links plus the expected transportation and fixed handling costs. A prototype problem is initially presented which is then progressively extended to accommodate capacities at the origins and multiple commodities. The results of an extensive set of computational tests are reported and discussed

The Convex Hull of Two Core Capacitated Network Design Problems

The network loading problem (NLP) is a specialized capacitated network design problem in which prescribed point-to-point demand between various pairs of nodes of a network must be met by installing (loading) a capacitated facility. We can load any number of units of the facility on each of the arcs at a specified arc dependent cost. The problem is to determine the number of facilities to be loaded on the arcs that will satisfy the given demand at minimum cost. This paper studies two core subproblems of the NLP. The first problem, motivated by a Lagrangian relaxation approach for solving the problem, considers a multiple commodity, single arc capacitated network design problem. The second problem is a three node network; this specialized network arises in larger networks if we aggregate nodes. In both cases, we develop families of facets and completely characterize the convex hull of feasible solutions to the integer programming formulation of the problems. These results in turn strengthen the formulation of the NLP

Pup Matching: Model Formulations and Solution Approaches

We model Pup Matching, the logistics problem of matching or pairing semitrailers known as pups to cabs that are able to tow one or two of the pups simultaneously, as an AfP-complete version of the Network Loading Problem (NLP). We examine a branch and bound solution approach tailored to the NLP formulation through the use of three families of cutting planes and four heuristic procedures. Theoretically, we specify facet defining conditions for a cut family that we refer to as odd flow inequalities and show that each heuristic yields a 2-approximation. Computationally, the cheapest of the four heuristic values achieved an average error of 1.3% among solved test problems randomly generated from realistic data. Branch and bound solved to optimality 67% of these problems. Application of the cutting plane families reduced the average relative difference between upper and lower bounds prior to branching from 18.8% to 6.4%

The Robust Network Loading Problem under Hose Demand Uncertainty: Formulation, Polyhedral Analysis, and Computations

Cataloged from PDF version of article.We consider the network loading problem (NLP) under a polyhedral uncertainty description of traffic demands. After giving a compact multicommodity flow formulation of the problem, we state a decomposition property obtained from projecting out the flow variables. This property considerably simplifies the resulting polyhedral analysis and computations by doing away with metric inequalities. Then we focus on a specific choice of the uncertainty description, called the “hose model,” which specifies aggregate traffic upper bounds for selected endpoints of the network. We study the polyhedral aspects of the NLP under hose demand uncertainty and use the results as the basis of an efficient branch-and-cut algorithm. The results of extensive computational experiments on well-known network design instances are reported

A hybrid multi-objective approach to capacitated facility location with flexible store allocation for green logistics modeling

We propose an efficient evolutionary multi-objective optimization approach to the capacitated facility location–allocation problem (CFLP) for solving large instances that considers flexibility at the allocation level, where financial costs and CO2 emissions are considered simultaneously. Our approach utilizes suitably adapted Lagrangian Relaxation models for dealing with costs and CO2 emissions at the allocation level, within a multi-objective evolutionary framework at the location level. Thus our method assesses the robustness of each location solution with respect to our two objectives for customer allocation. We extend our exploration of selected solutions by considering a range of trade-offs for customer allocation