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Efficient Heuristic Based Methods for Two-Stage Transshipment Problem

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Document pages: 13 pages

Abstract: In this article, we propose efficient methods for solving two stage transshipmentproblems. Transshipment problem is the special case of Minimum costflow problem in which arc capacities are infinite. We start by proposing anovel problem formulation for a two stage transshipment problem. Later, specialstructure of our problem formulation is utilized to devise two dual basedheuristics solutions with computational complexity of O (n2), and O (n3) respectively.These methods are motivated by the methods developed by Sharmaand Saxena [1], Sinha and Sharma [2]. Our methods differ in the initializationand the subsequent variation of the dual variables associated with the transshipmentnodes along the shortest path. Lastly, a method is proposed to extracta very good primal solution from the given dual solutions with a computationalcomplexity of O (n2). Efficacy of these methods is demonstrated byour numerical analysis on 200 random problems.

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