A Decomposition Heuristic for Mixed-Integer Supply Chain Problems

  • Mixed-integer supply chain models typically are very large but are also very sparse and can be decomposed into loosely coupled blocks. In this paper, we use general-purpose techniques to obtain a block decomposition of supply chain instances and apply a tailored penalty alternating direction method, which exploits the structural properties of the decomposed instances. We further describe problem-specific enhancements of the algorithm and present numerical results on real-world instances that illustrate the applicability of the approach.

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Author:Lars Schewe, Martin Schmidt, Dieter Weninger
Parent Title (German):Operations Research Letters
Document Type:Preprint
Language:English
Date of Publication (online):2019/03/12
Date of first Publication:2019/03/14
Release Date:2019/03/14
Tag:Alternating direction methods; Decomposition; Mixed-integer optimization; Penalty method; Supply chain
Issue:48(3)
Page Number:8
First Page:225
Last Page:232
Institutes:Friedrich-Alexander-Universität Erlangen-Nürnberg
Universität Trier
Subprojects:A05
B07
Licence (German):License LogoCreative Commons - CC BY - Namensnennung 4.0 International