An exact algorithm for the Traveling Salesman Problem with Deliveries and Collections

In this paper, we describe a new integer programming formulation for the Traveling Salesman Problem with mixed Deliveries and Collections (TSPDC) based on a two-commodity network flow approach. We present new lower bounds that are derived from the linear relaxation of the new formulation by adding valid inequalities, in a cutting-plane fashion. The resulting lower bounds are embedded in a branch-and-cut algorithm for the optimal solution of the TSPDC. Computational results on different classes of test problems taken from the literature indicate the effectiveness of the proposed method.