Dual-ascent and primal heuristics for production-assembly-distribution system design

Authors

  • Dong Liang,

    1. Senior Operations Research Analyst, Research Group, Sabre Holdings, 3150 Sabre Drive, Southlake, Texas 76092
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  • Wilbert E. Wilhelm

    Corresponding author
    1. Department of Industrial and Systems Engineering, Texas A&M University, TAMUS 3131, College Station, Texas 77843-3131
    • Department of Industrial and Systems Engineering, Texas A&M University, TAMUS 3131, College Station, Texas 77843-3131
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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

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