Article ID: | iaor20062302 |
Country: | Netherlands |
Volume: | 34 |
Issue: | 2 |
Start Page Number: | 228 |
End Page Number: | 238 |
Publication Date: | Mar 2006 |
Journal: | Operations Research Letters |
Authors: | Magnanti Thomas L., Simchi-Levi David, Teo Chung-Piaw, Shen Zuo-Jun Max, Shu Jia |
Keywords: | inventory, networks, organization |
By adding a set of redundant constraints, and by iteratively refining the approximation, we show that a commercial solver is able to routinely solve moderate-size strategic safety stock placement problems to optimality. The speed-up arises because the solver automatically generates strong flow cover cuts using the redundant constraints.