Arc flow formulations based on dynamic programming: Theoretical foundations and applications

Network flow formulations are among the most successful tools to solve optimization problems. Such formulations correspond to determining an optimal flow in a network. One particular class of network flow formulations is the arc flow, where variables represent flows on individual arcs of the network. For NP-hard problems, polynomial-sized arc flow models typically provide weak linear relaxations and may have too much symmetry to be efficient in practice. Instead, arc flow models with a pseudo-polynomial size usually provide strong relaxations and are efficient in practice. The interest in pseudo-polynomial arc flow formulations has grown considerably in the last twenty years, in which they have been used to solve many open instances of hard problems. A remarkable advantage of pseudo-polynomial arc flow models is the possibility to solve practical-sized instances directly by a Mixed Integer Linear Programming solver, avoiding the implementation of complex methods based on column generation. In this survey, we present theoretical foundations of pseudo-polynomial arc flow formulations, by showing a relation between their network and Dynamic Programming (DP). This relation allows a better understanding of the strength of these formulations, through a link with models obtained by Dantzig-Wolfe decomposition. The relation with DP also allows a new perspective to relate state-space relaxation methods for DP with arc flow models. We also present a dual point of view to contrast the linear relaxation of arc flow models with that of models based on paths and cycles. To conclude, we review the main solution methods and applications of arc flow models based on DP in several domains such as cutting, packing, scheduling, and routing

Heuristics with Performance Guarantees for the Minimum Number of Matches Problem in Heat Recovery Network Design

Heat exchanger network synthesis exploits excess heat by integrating process hot and cold streams and improves energy efficiency by reducing utility usage. Determining provably good solutions to the minimum number of matches is a bottleneck of designing a heat recovery network using the sequential method. This subproblem is an NP-hard mixed-integer linear program exhibiting combinatorial explosion in the possible hot and cold stream configurations. We explore this challenging optimization problem from a graph theoretic perspective and correlate it with other special optimization problems such as cost flow network and packing problems. In the case of a single temperature interval, we develop a new optimization formulation without problematic big-M parameters. We develop heuristic methods with performance guarantees using three approaches: (i) relaxation rounding, (ii) water filling, and (iii) greedy packing. Numerical results from a collection of 51 instances substantiate the strength of the methods

Models and bounds for two-dimensional level packing problems

We consider two-dimensional bin packing and strip packing problems where the items have to be packed by levels. We introduce new mathematical models involving a polynomial number of variables and constraints, and show that their LP relaxations dominate the standard area relaxations. We then propose new (combinatorial) bounds that can be computed in O(nlog n) time. We show that they dominate the other bounds, and establish their absolute worst-case behavior. The quality of models and bounds is evaluated through extensive computational experiment