Heuristic algorithms for the fixed-charge transportation problem

In a recent paper, Adlakha and Kowalski present a heuristic algorithm for solving fixed-charge transportation problem with a fixed cost between an origin and destination pair which is independent of the amount transported, along with a variable cost that is proportional to the amount shipped. The method though simple is designed for only solving small problems and does not provide optimal solution in many instances as fixed costs increase. In this paper we present a series of robust algorithms to extend applicability to larger size problems including those with large fixed costs. Using randomly generated test problems, we present computational experience for the proposed and comparable algorithms.