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A Method for the Solution of Fixed Charge Problems By Benders’ Decomposition

John Mashford

Abstract

A method of solving fixed charge problems by Benders' Decomposition is described. The sub-problem of the Benders' Decomposition process is solved by solving a smaller equivalent problem. Extremal optimal solutions and extreme rays associated with the dual of the sub-problem are obtained from those associated with the smaller problem.

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Key concepts: Benders' decomposition, Fixed charge, Mathematics, Decomposition, Decomposition method (queueing theory), Mathematical optimization, Dual (grammatical number), Charge (physics)