A Simple Algorithm for Solving Small, Fixed-Charge Transportation Problems

The solution of the classical transportation problem (as generally presented) can be mastered very quickly. The fixed-charge problem is another matter. The reason is that the introduction of fixed costs in addition to variable costs results in the objective function being a step function. Fixed-charge problems are usually solved, therefore, by using sophisticated computer software. This paper deviates from that approach. It presents a low-tech. algorithm for the solution of small, fixed-charge problems.