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Keywords:

  • dual-ascent algorithm;
  • primal drop heuristic;
  • branch and bound;
  • assembly system design;
  • supply chain design

Abstract

This article proposes two dual-ascent algorithms and uses each in combination with a primal drop heuristic embedded within a branch and bound framework to solve the uncapacitated production assembly distribution system (i.e., supply chain) design problem, which is formulated as a mixed integer program. Computational results indicate that one approach, which combines primal drop and dual-ascent heuristics, can solve instances within reasonable time and prescribes solutions with gaps between the primal and dual solution values that are less than 0.15%, an efficacy suiting it for actual large-scale applications. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2013