A new algorithm for optimal solution of fixed charge transportation problem

Abstract

Fixed charge transportation problem (FCTP) is a supply chain problem. In this problem, in addition to the cost per unit for each transported product, a fixed cost is also required. The aim is to carry out the transportation process at the lowest possible cost. As with all supply chain problems, this problem may have one, two, or three stages. An algorithm that can find the optimal solution for the problem in polynomial time is not known, even if it is a single-stage problem. For this reason, new algorithms have been proposed in recent years to provide an approximate solution for the problem. The vast majority of these algorithms are meta-heuristic algorithms. In this study, we propose a new heuristic algorithm to find an optimal solution for the 1-stage FCTP. We compare the results of our algorithm with the results of other existing algorithms.