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A Decomposition Heuristic for Mixed-Integer Supply Chain Problems

Lars Schewe (lars.schewe***at***fau.de)
Martin Schmidt (martin.schmidt***at***uni-trier.de)
Dieter Weninger (dieter.weninger***at***fau.de)

Abstract: Mixed-integer supply chain models typically are very large but are also very sparse and can be decomposed into loosely coupled blocks. In this paper, we use general-purpose techniques to obtain a block decomposition of supply chain instances and apply a tailored penalty alternating direction method, which exploits the structural properties of the decomposed instances. We further describe problem-specific enhancements of the algorithm and present numerical results on real-world instances that illustrate the applicability of the approach.

Keywords: Supply chain, Mixed-integer optimization, Decomposition, Penalty method, Alternating direction method

Category 1: Applications -- OR and Management Sciences (Supply Chain Management )

Category 2: Integer Programming ((Mixed) Integer Linear Programming )


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Entry Submitted: 03/12/2019
Entry Accepted: 03/12/2019
Entry Last Modified: 02/18/2020

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