35

NZOR Volume 10 number 1 January 1982

GRAPH THEORY - A SURVEY OF ITS USE IN OPERATIONS RESEARCH

L.R. FOULDS
UNIVERSITY OF CANTERBURY
CHRISTCHURCH, N.Z.

SUMMARY

One of the common themes in O.R. is the modelling approach.

Unfortunately many accurate models of O.R. problems turn out to be
intractable when subjected to standard techniques. This paper shows
how graph theory and networks may be profitably used to model certain
discrete O.R. problems from a different view-point. Effective
algorithms and heuristics for the models and real world applications
are referenced.

1. Introduction

One of the common themes in O.R. is the modelling

approach. Unfortunately many accurate models of O.R.
problems turn out to be intractable when subjected to
standard techniques. However certain discrete problems
can be profitably analysed using graph theoretic models.
This paper introduces useful concepts from graph theory
and shows how they may be used to look at certain O.R.
problems from the viewpoint of the graph theorist.

We begin in the next section with a discussion of the

difficulty of problems as a justification for using the
alternative graph theoretic models. Sections 3, 4, and 5
discuss models of certain O.R. problems based on graphs,
directed graphs and networks, respectively. A relatively
small number of references are cited. They develop in
some depth what is discussed here and should be taken as
signposts by the reader interested in undertaking a more
exhaustive literature search.

2. PROBLEM COMPLEXITY

Many models of common processes that are analysed by

O.R. techniques are discrete in the sense that their
decision variables must assume values from a discrete
rather than a continuous set. Examples include: vehicle

Manuscript submitted August 1981, revised October 1981.

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and machine scheduling, facility location, plant layout,

and certain assignment and allocation problems. The
determininistic versions of such models are usually
concerned with optimizing some measure of system
performance subject to constraints on the values the
variables can assume. Thus many are expressed in terms
of integer programming. These models form a branch of
applied mathematics which has extensive overlap with O.R.
and is known as combinatorial optimization (CO).

Unfortunately there are just too many solutions to

any nontrivial problem for complete enumeration to be
feasible. For example, consider the problem of finding
the shortest path which visits each of a given set of n
cities. Even if each of the n! possible paths could be
evaluated in a billionth of a second it would still take
over 16,000 years to find the best for n=21. It is
therefore of interest to attempt to design algorithms
which are more effective than complete enumeration.

We turn now to the question of evaluating the

effectiveness of an algorithm. The concept of effective­
ness was placed on a firm scientific foundation by Edmonds
[30] whose work caused the following convention to be
generally adopted by those concerned with algorithm
efficiency:

An algorithm is considered to be effective if it can guarantee

to solve any instance of the problem for which it was designed
by performing a number of elementary computational steps and
the number can be expressed as a polynomial function of the
size of the problem.

It is assumed that computation time is linearly

proportional to the number of elementary computational
steps required to implement the algorithm. The size of
a specific instance of a problem is defined to be the
number of symbols required to describe it.

It is a valid question to ask whether an effective,

or polynomial-time, algorithm can be devised for a given CO
problem. There exist CO problems for which it has been
shown that no effective algorithm exists, and others for
which polynomial-time algorithms have been devised. This
second class of problems is denoted by P (polynomial).

There exists a third class of problems whose status

is unknown. It is possible to devise algorithms for each
problem but no effective algorithm is known for any of
them. However neither has there yet appeared a proof
showing that any are intractable. Our problem of finding
the shortest path through a given set of cities lies in
this last class which is denoted by NP (nondeterministic
polynomia I).
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Within NP there is a subset of problems which are

called NP-Complete. A problem is termed NP-Complete if it:
(1) belongs to NP and (2) has the property that if an
effective algorithm is found for it then an effective
algorithm can be found for every problem in N P . In this
sense the NP-Complete problems are the hardest in NP.
To establish the status of a CO problem for which no
effective algorithm is known it is usual to employ the
concept of reducibility.

A problem pi is said to be reducible to problem p 2

(written pi « P 2) if the existence of an effective algorithm
for p 2 implies the existence of an effective algorithm for
Pi . The following result is often used to establish that
a problem p 2 a NP is NP-Complete.

Theorem 2.1: If pi is NP-Complete and pi^pa then p 2 is

also NP-Complete.

Proof: Garey and Johnson [40, p.38].

Many of the problems in NP have defied the attempts
to find effective algorithms of some of the best mathe­
maticians over the past 30 years. There is also more
objective circumstantial evidence that P ^ NP. Thus it
seems unlikely that an effective algorithm exists for any
of the NP-Complete problems.

Unfortunately, many of the O.R. models of the common

processes given earlier as examples are NP-Complete. Of
course a manager will find no comfort at all in his O.R.
consultant telling him that the literature does not
contain an efficient method which guarantees an optimal
solution for his problem in reasonable computational
time. Come what may, he somehow has to schedule his flight
crews, route his delivery vans, or whatever. At this point
the O.R. analyst has a number of options: he can attempt
to (1) develop the methodology that will provide optimal
solutions efficiently, (2) find algorithms that will solve
certain special cases of the problem, (3) look for efficient
algorithms that solve a relaxed version of the problem,
(4) come up with algorithms that seem likely to run
quickly most, but not all, of the time, (5) give up the
quest for optimality and provide approximate methods that
run quickly but have no guarantee of optimality.

Because of the theory just discussed, aim (1) is

often unrealistic. Aims (2) and (3) are occasionally
appropriate. However there is a very real danger.
Churchman [21] and others have warned of the pitfalls of
substituting the real problem with an artificial one which
corresponds to standard models and known techniques.
Nothing can give O.R. a worse name than the consultant
who "bends" his client's problem into a form which is
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a m e n a b l e to s o l u t i o n b y his p e t met h o d , p r o d u c i n g s o l u t i o n s
w h i c h are of l i t t l e p r a c t i c a l use. H o w e v e r a i m (4) is
obviously worthy. It is u s u a l l y s a t i s f a c t o r y to e m p l o y an
a l g o r i t h m w h i c h a l m o s t a l w a y s run s in r e a s o n a b l e time. The
s i m p l e x a l g o r i t h m for l i n e a r p r o g r a m m i n g is a g o o d example.
H o w e v e r if s u c h a m e t h o d c a n n o t be fo u n d w e are l eft w i t h
a i m (5).

Th e p u r p o s e of t h i s p a p e r is to e x p l o r e a n e w w a y in
w h i c h the s t r u c t u r e of the m o d e l of a d i f f i c u l t p r o b l e m can
be e x p l o i t e d in o r d e r to a t t a i n at l e a s t o n e of the five
aims. T h i s w a y i n v o l v e s b u i l d i n g a new, g r a p h - t h e o r e t i c
m odel. T h e i n t e r e s t e d r e a d e r is r e f e r r e d to the c l a s s i c
text on p u r e g r a p h t h e o r y (GT) by H a r a r y [48] a n d to the
m o r e a p p l i e d t e x t s b y C h a c h r a G h a r e and M o o r e [18],
C h r i s t o f i d e s [19], D e o [26], M i n i e k a [67], R o b i n s o n and
F o u l d s [81], a n d S w a m y and T h u l a s i v a m a n [86] all of w h i c h
c o n t a i n a p p l i c a t i o n s to O.R. Graph theoretic notation
a nd t e r m i n o l o g y u s e d in this p a p e r is fu l l y d e f i n e d in
[48] a n d [81] . W e d e n o t e a g r a p h w i t h p o i n t set V and
l i ne set E b y ( V , E ) .

3. T H E A P P L I C A T I O N OF G R A P H T H E O R Y IN O.R.

T h e p u r p o s e of thi s p a p e r is to e x p lain, n o w tha t GT

has b e c o m e a s y s t e m a t i c tool, h o w it c a n be u s e d to y i e l d
ne w i n s i g h t s i n t o O.R. m o d e l s . O n e s i m p l e u s e of g r a p h s
in p r o b l e m - s o l v i n g in a n y f i e l d i n c l u d i n g O.R. is the
following. It is o f t e n c o n v e n i e n t to d e p i c t the
r e l a t i o n s h i p b e t w e e n e l e m e n t s of a s y s t e m b y m e a n s of a
graph. T h u s o n e o f t e n sees a t r a n s p o r t a t i o n , a s s i g n m e n t ,
or P E R T p r o b l e m r e p r e s e n t e d b y a g r a p h (in t h e s e cases
a d i r e c t e d g r a p h ) . S u c h r e p r e s e n t a t i o n s are o f t e n an aid
in d e s c r i b i n g a p r o b l e m a n d a r e u s e f u l as such. However,
t h i s p a p e r is c o n c e r n e d not j ust w i t h w a y s o f r e p r e s e n t i n g
an O.R. p r o b l e m in t e r m s of GT but m o r e w i t h u s i n g the
r e s u l t s of GT to a c t u a l l y s o l v e the pr o b l e m . Not every
c o n c e i v a b l e GT a p p l i c a t i o n is d o c u m e n t e d . Rather, some
of the m a j o r a p p l i c a t i o n s are p r e s e n t e d to g i v e an o v e r a l l
f l a v o u r to this area, w i t h the t o p i c s of f a c i l i t i e s
l a y o u t and t r a f f i c n e t w o r k d e s i g n t r e a t e d in some depth.

3.1 GRAPH THEORETIC ALGORITHMS

In this p a p e r w e a d o p t the f o l l o w i n g s p e c i a l i z e d
d e f i n i t i o n of an a l g o r i t h m . A n a l g o r i t h m for a p r o b l e m
is a s c i e n t i f i c p r o c e d u r e w h i c h is g u a r a n t e e d to c o n v e r g e
to an o p t i m a l s o l u t i o n o f t h e p r o b l e m . This subsection
d i s c u s s e s e f f e c t i v e GT a l g o r i t h m s for c e r t a i n O.R. problems.
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The C h i n e s e Postman's Problem

C o n s i d e r a p o s t m a n w h o b e g i n s d e l i v e r i n g m a i l in a cit y
sub u r b h a v i n g p i c k e d it up f r o m the p o s t o f f i c e . He w i s h e s
to c o ve r e a ch str e e t in h i s a r e a at l e a s t o n c e a n d f i n a l l y
r e t u r n to the pos t offi c e , t r a v e l l i n g t h e le a s t p o s s i b l e
distance. T his p r o b l e m is k n o w n as t h e C h i n e s e P o s t m a n ' s
P r o b l e m (CPP) as it w a s f irst c o n s i d e r e d by the C h i n e s e
m a t h e m a t i c i a n K wa n M e i - k o [66]. Further applications
abound, including : the c o l l e c t i o n of h o u s e h o l d ref u s e ,
m i l k d e l i very, the i n s p e c t i o n of power, t e l e p h o n e , or
r a i l w a y lines, the s p r a y i n g of s a l t - g r i t on r o a d s in
winter, o f f i c e b l o c k c l e a n i n g , s e c u r i t y g u a r d r o u t i n g ,
s c h e d u l i n g of s n o w p l o u g h s a n d e v e n m u s e u m tou r i n g .

The p r o b l e m c a n be f o r m u l a t e d as a GT m o d e l in w h i c h
a w e i g h t e d g r a p h G is d e v i s e d w i t h its poin t s , l i n e s and
w e i g h t s r e p r e s e n t i n g i n t e r s e c t i o n s , stree t s , a n d d i s t a n c e s
respectively. A n E u l e r i a n t o u r in a g r a p h is a c l o s e d
c i r c u i t o f the lines of the g r a p h w h i c h i n c l u d e s e a c h line
e x a c t l y once. C l e a r l y C P P is e q u i v a l e n t to f i n d i n g the
least w e i g h t E u l e r i a n tou r in the g r aph. If G is E u l e r i a n
(contains an E u l e r i a n tour), a n y E u l e r i a n t o u r is o p t i m a l .
T h e r e e x i s t s an e f f i c i e n t a l g o r i t h m for d e v i s i n g s u c h a
tour w h i c h is due to F l e u r y (see L u c a s [63]). If G is not
E u l e r i a n some lines w i l l h a v e to be c o v e r e d m o r e t h a n once.
A n e f f i c i e n t a l g o r i t h m for t h i s c a s e has b e e n p r e s e n t e d by
E d m o n d s and J o h n s o n [31]. B a s i c a l l y the a l g o r i t h m add s
d u p l i c a t e d lines of m i n i m a l t o t a l w e i g h t so as to m a k e G
E u l e r i a n and the n u ses F l e u r y ' s rule.

Good [45] p r o v i d e d the f o l l o w i n g i n t e r e s t i n g a p p l i ­

c a t i o n of a d i r e c t e d E u l e r t our in a d i g r a p h . The
p o s i t i o n of a r o t a t i n g d r u m in a c o m p u t e r c a n be r e c o g n i z e d
by m e a n s of b i n a r y s i g n a l s p r o d u c e d at a n u m b e r of
e l e c t r i c a l c o n t a c t s o n the s u r f a c e of the drum. The
sur f a c e is d i v i d e d i nto 2m secti o n s , e a c h c o m p r i s i n g
e ith e r c o n d u c t i n g or i n s u l a t i n g m a t e r i a l . If an
e l e c t r i c a l c o n t a c t is a d j a c e n t to a c o n d u c t i n g
(insulating) s e c t i o n the sign a l 1(0) is sent.

The p r o b l e m is to m i n i m i z e the n u m b e r sa y k of
c o n s e c u t i v e l y p l a c e d c o n t a c t s so t h a t e a c h p o s i t i o n of
the d r u m g i v e s a u n i q u e r e a d i n g . It can be s o l v e d as
follows. A n y p o s i t i o n c o r r e s p o n d s to a k - d i g i t b i n a r y
n umber. It can be sh o w n t h a t m c o n t a c t s a r e s u f f i c i e n t
b y r e d u c i n g the p r o b l e m to f i n d i n g a d i r e c t e d E u l e r T o u r
in a diagra ph .

The T i m e t a b l i n g P r o b l e m

C o n s i d e r a school w i t h m t e a c h e r s: T i , T 2 , ... 1 Tm ;
and n classes: Ci, C 2 , ... , C n . G i v e n t h a t t e a c h e r T.1 is
 40

r e q u i r e d to t e a c h c l a s s Cj for p^j p e r i o d s s c h e d u l e a c o m ­
p l e t e t i m e t a b l e in t h e m i n i m u m p o s s i b l e n u m b e r of periods.
The p r o b l e m c a n be f o r m u l a t e d as a GT m o d e l in w h i c h a
b i p a r t i t e g r a p h G = (V,E) is d e v i s e d w i t h V = Vi U V 2
w h e r e Vi = { T i , T 2 , ••• ,Tjp} a n d V 2 = ( C i , C 2 , ... , C n },
a n d p o i n t s T^ and Cj a r e j o i n e d b y p^j lines.

T h e t i m e t a b l i n g p r o b l e m is e q u i v a l e n t to c o l o u r i n g
the p o i n t s in V, so t h a t no two a d j a c e n t p o i n t s h a v e the
same colour, w i t h as f e w c o l o u r s as p o s s i b l e - e a c h c o l o u r
r e p r e s e n t i n g a d i s t i n c t per i o d . (See H a k e n and A p p e l [46]
for a f a m o u s r e s u l t o n g r a p h c o l o u r i n g . ) B o n d y and M u r t y
[9] h a v e p r e s e n t e d an e f f i c i e n t a l g o r i t h m for b i p a r t i t e
graph colouring. T h e y a l s o s o l v e the m o r e r e a l i s t i c
p r o b l e m of a s s u m i n g t h a t t h e r e a r e o n l y q c l a s s r o o m s
ava i l a b l e . T h e c o m p l i c a t i o n of p r e a s s i g n m e n t s (i.e.
c o n d i t i o n s s p e c i f y i n g the p e r i o d s d u r i n g w h i c h c e r t a i n
t e a c h e r s a n d c l a s s e s m u s t meet) h a s b e e n s t u d i e d by
D e m p s t e r [27] a n d de W e r r a [28].

The C o n n e c t o r P r oblem
A r a i l w a y n e t w o r k c o n n e c t i n g a n u m b e r of c i t i e s is
to b e set up, t he o b j e c t i v e is to m a k e it p o s s i b l e to
t r a v e l b y some p a t h b e t w e e n e v e r y p a i r of cities. Given
the c o s t of c o n s t r u c t i o n wij, of l i n k i n g c i t i e s vi and
v j , design a network with minimum possible construction
cost. O t h e r a p p l i c a t i o n s i n c lude: e l e c t r i c a l n e t w o r k
design, n a t u r a l ga s r e t i c u l a t i o n , c o m m u n i c a t i o n n e t w o r k
co n s t r u c t i o n , and c i t y u t i l i t i e s c a b l e l ayout. A less
d i r e c t a p p l i c a t i o n a p p e a r s in the f o r m of a s u b r o u t i n e
in some s o l u t i o n m e t h o d s for the t r a v e l l i n g s a l e s m a n
p r o b l e m w h i c h is d i s c u s s e d later. T h e p r o b l e m ca n be
f o r m u l a t e d as a GT m o d e l in w h i c h a w e i g h t e d g r a p h
G = (V,E) is d e v i s e d w i t h p oints, lines, a n d w e i g h t s
r e p r e s e n t i n g citie s , f e a s i b l e c o n n e c t i o n s , a n d c o n s t r u c t i o n
costs r e s p e c t i v e l y . The p r o b l e m is e q u i v a l e n t to f i n d i n g
a s p a n n i n g s u b g r a p h of G of m i n i m u m w e i g h t . T h e r e are
two w e l l - k n o w n e f f i c i e n t a l g o r i t h m s for t his p r o b l e m
du e to K r u s k a l [56] (which is m o r e s u i t a b l e w h e n there
ar e r e l a t i v e l y f e w c o n n e c t i o n p o s s i b i l i t i e s ) a n d P r i m
[79] (which is m o r e s u i t a b l e w h e n m o s t c o n n e c t i o n
p o s s i b i l i t i e s are a v a i l a b l e ) . E f f i c i e n t i m p l e m e n t a t i o n s
for the lat t e r a l g o r i t h m a r e g i v e n by D i j k s t r a [29] and
b y K e v i n and W h i t n e y [53].

Shortest Path Problems

C o n s i d e r o n c e a g a i n the c o n n e c t o r p r o b l e m just
discussed. B e f o r e a c t u a l l y c o n s t r u c t i n g the r a i l w a y
n e t w o r k it is c o n c e i v a b l e t h a t a p l a n n e r m a y w i s h to c a l ­
c u l a t e c e r t a i n s h o r t e s t p a t h s in the g r a p h of p o t e n t i a l
connections. T h e r e a r e a m u l t i t u d e of a p p l i c a t i o n s of
 41

the p r o b l e m of fin d i n g s h o r t e s t p a t h s in a w e i g h t e d graph.

W h e r e all c o n s t r u c t i o n c o s t s are n o n n e g a t i v e , an e f f i c i e n t
a l g o r i t h m for f i n d i n g the s h o r t e s t p a t h b e t w e e n two
s p e c i f i e d p o i n t s h a s b e e n g i v e n by D i j k s t r a [29], In
some cases, some c o n s t r u c t i o n " costs" m a y r e p r e s e n t p r o f i t s
and h e n c e w o u l d be n e g a t i v e . A l g o r i t h m s for a g e n e r a l c o s t
m a t r i x w e r e g i v e n by F o r d [37], M o o r e [70] a n d B e l l m a n [5],
W h e n s h o r t e s t p a t h s b e t w e e n all p a i r s of p o i n t s are
required, D i j k s t r a ' s a l g o r i t h m c a n b e u s e d r e p e a t e d l y .
H o w e v e r F l o y d ' s a l g o r i t h m [33]], as e l a b o r a t e d u p o n b y
M u r c h l a n d [71], is in g e n e r a l a b o u t 50% faster.

The Optimal A s s i g n m e n t P r oblem

C o n s i d e r a f a c t o r y in w h i c h n w o r k e r s : Wi, W 2 , ... ,W
are to be a s s i g n e d to n m a c h i n e s Mi, M 2 , ... , M n , in a n
o n e - t o - o n e fashion. Each worker has been t e sted on each
m a c h i n e and a tab l e of s t a n d a r d i z e d t i m e s a r e a v a i l a b l e
providing information about relative wo r k e r abilities.
The p r o b l e m is to a s s i g n the w o r k e r s to m a c h i n e s so as to
m i n i m i z e the total of t h e s t a n d a r d i z e d t i m e of t h e a s s i g n ­
ment. T h e p r o b l e m c a n be f o r m u l a t e d as a G T m o d e l in
w h i c h a wei g h t e d , b i p a r t i t e g r a p h G = (V,E) is d e v i s e d
w i t h V = Vi U V 2 w h e r e Vi = {Wi , W 2 , ••• fW n ) an<^
V 2 = {Mi,M 2 , ••• ,M n }. T h e line j o i n i n g Wi a n d Mj is
w e i g h t e d w i t h tij, the s t a n d a r d i z e d t i m e for w o r k e r W i o n
m a c h i n e M j . T h e p r o b l e m is e q u i v a l e n t to f i n d i n g a
m i n i m u m w e i g h t p e r f e c t m a t c h i n g o n G. A n e f f i c i e n t
a l g o r i t h m for this problem, c a l l e d t h e H u n g a r i a n m e t h o d ,
has b e e n g i v e n by K u h n [55].

The L o c a t i o n o f C e n t r e s

Consider a network of roads whose points represent

co m m u n i t i e s . T h e r e are a n u m b e r o f e m e r g e n c y centres,
s u c h as h o spitals, p o l i c e or fir e s t a t i o n s , to b e l o c a t e d
on the network, not n e c e s s a r i l y in the c o m m u n i t i e s .
The o p t i m a l i t y c r i t e r i o n is o f t e n t a k e n to be the m i n i ­
m i z a t i o n of the d i s t a n c e o f the f u r t h e s t c o m m u n i t y to a
centre. T h e r e is a second, r e l a t e d p r o b l e m : for a
g i v e n c r i t i c a l d i s t a n c e l o c a t e the s m a l l e s t n u m b e r of
c e n t r e s so that all c o m m u n i t i e s lie w i t h i n thi s c r i t i c a l
d i s t a n c e from at least o n e cen t r e . T h e p r o b l e m can be
f o r m u l a t e d as a GT m o d e l in w h i c h a w e i g h t e d g r a p h is
(G = V,E) is d e v i s e d w i t h poin t s , lines, and w e i g h t s
representing communities, roads and distances respectively.
The p r o b l e m is to i d e n t i f y a set of points, p o s s i b l y
i n s e r t e d into the li n e s of G, w h i c h s a t i s f y the ab o v e
criteria. C h r i s t o f i d e s [20] h a s c a l l e d t h e s e n e w p o i n t s
a b s o l u t e p - c e n t r e s and has p r o v i d e d an e f f i c i e n t a l g o r i t h m
w h i c h can solve e i t h e r the m i n i m a x or the n u m b e r of c e n t r e s
m i n i m i z a t i o n probl e m s .
 42

W i t h r e g a r d to the l o c a t i o n p r o b l e m jus t di sc us s e d ,
it is o f t e n the cas e t h a t n o n e m e r g e n c y f a c i l i t i e s s u c h as
s w i t c h i n g c e n t r e s for t e l e p h o n e n e t w o r k s , s u b s t a t i o n s in
e l e c t r i c p o w e r net w o r k s , p o s t o f f i c e s , l i b r a r i e s , or g o o d s
d e p o t s are to be lo c at e d . W i t h s u c h s c e n a r i o s it is us u a l
to m o d i f y the o p t i m a l i t y c r i t e r i o n f r o m o n e of "min i m a x "
to o n e of " m inimum" , i.e. to m i n i m i z e t h e t o t a l c o s t of
t r a v e l f r o m e a c h c o m m u n i t y to t h e n e a r e s t centre. (These
t r a v e l cos t s are c o m m o n l y som e f u n c t i o n of t h e i m p o r t a n c e
of t h e co m m u n i t y , g i v e n for e x a m p l e b y the d e m a n d for the
s e r v i c e of the f ac il i t y . P r o b l e m s of t h i s t y p e come
u n d e r t h e g e n e r a l h e a d i n g of f a c i l i t y l o c a t i o n on a n e t w o r k .
U n f o r t u n a t e l y t h e r e are no e f f i c i e n t GT a l g o r i t h m s for
this problem. T h e r e a d e r is r e f e r r e d to H a n a n a n d
K u r t z b e r g [47] for f u r t h e r d e t a i l s o n w h a t is a v a i l a b l e .

Communications Network Reliability

C o n s i d e r a n u m b e r of c e n t r e s w h i c h a r e to be c o n n e c t e d
b y c o m m u n i c a t i o n s links. A m e a s u r e of the r e l i a b i l i t y of
the s y s t e m is t h e s m a l l e s t n u m b e r o f l i n k s w h o s e b r e a k d o w n
m a k e s c o m m u n i c a t i o n b e t w e e n e v e r y p a i r of c e n t r e s imposs i b l e .
E a c h p o t e n t i a l l ink j o i n i n g c e n t r e s i a n d j has a c o n s t r u c ­
tion c o s t c i j . The s y s t e m is to be d e s i g n e d so t h a t (for a
g i v e n n u m b e r k) at least k lin k s m u s t b r e a k d o w n b e f o r e
complete pairwise communication becomes impossible. The
o p t i m a l i t y c r i t e r i o n is t o t a l c o n s t r u c t i o n c ost w h i c h is
to be m i n i m i z e d . T h e p r o b l e m c a n be f o r m u l a t e d as a GT
m o d e l in w h i c h a w e i g h t e d g r a p h G = (V,E) is d e v i s e d w i t h
points, lines a nd w e i g h t s r e p r e s e n t i n g centres, p o t e n t i a l
links, a n d c o n s t r u c t i o n c o s t s r e s p e c t i v e l y . The problem
is to d e t e r m i n e a m i n i m u m w e i g h t k - c o n n e c t e d s p a n n i n g
s u b g r a p h of G. F o r k=l t h i s p r o b l e m r e d u c e s to the
connector problem already discussed. Unfortunately there
are no k n o w n e f f i c i e n t a l g o r i t h m s for p r o b l e m s for w h i c h
k > 1. H o w e v e r the s p e c i a l c a s e in w h i c h e v e r y p o s s i b l e
lin k is a v a i l a b l e and t h e i r c o n s t r u c t i o n c o s t s are all
equal can be s o l v e d by the e f f i c i e n t GT a l g o r i t h m of Bo n d y
and M u r t y [9].

Project Selection

S u p p o s e a n o r g a n i z a t i o n has n p r o j e c t s : P i , P 2 , ••• >p n

w h i c h m u s t be c a r r i e d out. P r o j e c t P^ r e q u i r e s some s u b s e t
R-l c: {T i ,T 2 , ••• ,T q } of t h e total set of q r e s o u r c e s
available. E a c h p r o j e c t c a n be c o m p l e t e d in a s i n g l e unit
of t i m e b ut two p r o j e c t s r e q u i r i n g the sam e r e s o u r c e
c a n n o t be e x e c u t e d s i m i l t a n e o u s l y . W h a t is the m a x i m u m
n u m b e r of p r o j e c t s t h a t c o u l d be e x e c u t e d at the same time?
The p r o b l e m m a y h a v e to be s o l v e d r e p e a t e d l y as m o r e
p r o j e c t s b e c o m e a v a i l a b l e in later p e r i od s . It can be
 43

fo r m u l a t e d as a GT m o d e l in w h i c h a g r a p h G = (V,E) is
d e v i s e d w i t h p o i n t s a n d l ines r e p r e s e n t i n g p r o j e c t s and
resource requirement nonoverlap respectively. T h a t is Pi
and Pj are c o n n e c t e d w h e n e v e r Ri D Rj = <J>. T h e p r o b l e m
r e d u c e s to f i n d i n g a m a x i m a l i n d e p e n d e n t set of G.

A v e r y e f f i c i e n t GT a l g o r i t h m for this p r o b l e m has

b e e n p r e s e n t e d by B r o n and K e r b o s h [14].

3.2 GRAPH THEORETIC HEURISTICS

A n a l y s t s in b u s i n e s s a n d i n d u s t r y a r e o f t e n f a c e d w i t h
p r o b l e m s of such c o m p l e x i t y tha t the s t a n d a r d a l g o r i t h m s
of O.R. are i n a p p r o p r i a t e . T h e r e are a n u m b e r of r e a s o n s
w h y this m i g h t be so: (1) The d i m e n s i o n s of the p r o b l e m
m a y be so large tha t the a p p l i c a t i o n of the f a s t e s t - k n o w n
a l g o r i t h m on the f a s t e s t c o m p u t e r m a y take a p r o h i b i t i v e
a m o u n t of c o m p u t a t i o n a l time. T h i s is c e r t a i n l y t rue for
certain vehicle routing problems. (2) T h e p r o b l e m m a y be
v i r t u a l l y i m p o s s i b l e to f o r m u l a t e in e x p l i c i t terms. The
aims of d i f f e r e n t m a n a g e r s i n v o l v e d in o p e r a t i n g a s y s t e m
m a y be c o n f l i c t i n g or i l l - d e f i n e d . In f a c t it m a y be
d i f f i c u l t to e x p r e s s m a n y f e a t u r e s of a p r o b l e m in
q u a n t i t a t i v e terms. (3) D a t a c o l l e c t i o n m a y be b e s e t w i t h
p r o b l e m s of a c c u r a c y a n d m a g n i t u d e . F o r e x a m p l e in l a r g e -
scale l o c a t i o n p r o b l e m s the a n a l y s t m a y be f a c e d w i t h
c a l c u l a t i n g an e n o r m o u s n u m b e r of l o c a t i o n - t o - l o c a t i o n
distan c e s . In o r d e r to p r o v i d e t his i n f o r m a t i o n in
r e a s o n a b l e t ime it m a y b e n e c e s s a r y to m a k e a p p r o x i m a t i o n s .
S o m e t i m e s the use of a p p r o x i m a t e d a t a m a k e s the c o n c e p t
of an o p t i m a l sol u t i o n m e a n i n g l e s s .

The idea of a p p r o x i m a t e m e t h o d s , w h i c h are e a s y to

use b u t w h i c h g ive up the g u a r a n t e e of o p t i m a l i t y is n o t
new. Indeed as e a r l y as 300 A D Pappas, w r i t i n g o n Euclid,
s u g g e s t e d this appr o a c h . Descartes and Leibnitz both
a t t e m p t e d to f o r m a l i z e the subject. It b e c a m e k n o w n as
the study of h e u r i s t i c s a n d h e u r i s t i c w a s the n a m e of an
a rea of a c a d e m i c s t u d y w h o s e a i m w a s to i n v e s t i g a t e the
m e t h o d s of d i s c o v e r y a n d i n v e ntion. It w a s a l l i e d w i t h
logic, p h i l o s o p h y a n d p s y c h o l o g y . The name itself was
d e r i v e d from the G r e e k w o r d h e u r i s k e i n - to d i s c o v e r .
In O.R. t o d a y the t e r m h e u r i s t i c is u s e d to d e s c r i b e a
m e t h o d w h i c h , on the b a s i s o f e x p e r i e n c e o r j u d g e m e n t ,
s e e m s l i k e l y to y i e l d a g o o d s o l u t i o n to a p r o b l e m , b u t
w h i c h c a n n o t be g u a r a n t e e d to p r o d u c e a n o p t i m u m .

The T ra v e l l i n g S a l e s m a n P ro b l e m

The f o l l o w i n g s c h e d u l i n g p r o b l e m o f t e n a r i s e s in the
p h a r m a c e u t i c a l industry. B a t c h e s of N d r ugs: D i ,D 2 , . . . ,Dj,
 44

are m a n u f a c t u r e d in a s i n g l e r e a c t i o n v e s s e l, o n e at a
time. If Dj is to f o l l o w Di the v e s s e l h a s to be cleaned,
at a c o s t Cij. The b a t c h e s are to be m a n u f a c t u r e d in a
c o n t i n u o u s c y c l i c m a n n e r , so t h a t o n c e the las t b a t c h has
b e e n p r o d uc ed, the f i r s t b a t c h is to be b e g u n again. The
p r o b l e m is to f ind the p r o d u c t i o n s e q u e n c e w i t h least total
c l e a n i n g cost. The p r o b l e m c a n be f o r m u l a t e d as a G T m o d e l
in w h i c h a w e i g h t e d g r a p h G = (V,E) is d e v i s e d w i t h points,
l i nes a n d w e i g h t s r e p r e s e n t i n g d r ugs, d i r e c t s u c c e s s i o n in
the p r o d u c t i o n sequence, a n d c l e a n i n g c o s t s r e s p e c t i v e l y .
T h e n the p r o b l e m is to d e t e r m i n e a H a m i l t o n c y c l e of G of
l e a s t cost. A H a m i l t o n c y c l e in a g r a p h G is a c l o s e d
c i r c u i t of the line s of G w h i c h p a s s e s t h r o u g h e a c h p o i n t
of G e x a c t l y once. There are numerous other applications
of t his m o d e l i n c l u d i n g : m a i l b o x c o l l e c t i o n , scho o l
b u s schedu l i n g , e l e c t r i c i t y s u p p l y n e t w o r k des i g n , and
s e r v i c e v e h i c l e rou t i n g . U n f o r t u n a t e l y t h e p r o b l e m is
N P - C o m p l e t e a n d h e n c e no e f f i c i e n t a l g o r i t h m s are known.
H o w e v e r t h e r e are a n u m b e r of e f f e c t i v e h e u r i s t i c s for
the p r o b l e m i n c l u d i n g t h o s e b y L i n [60] a n d C h r i s t o f i d e s
[20], the l a t t e r g u a r a n t e e i n g a s o l u t i o n v a l u e w i t h i n 50%
of the o p t i m u m .

A Storage Problem
C o n s i d e r a f a c t o r y w h i c h m a n u f a c t u r e s a n u m b e r of
c h e m i c a l s w h i c h it t h e n s t o r e s in a w a r e h o u s e . Certain
p a i r s of c h e m i c a l s c a n n o t be s t o r e d in the same c o m p a r t m e n t .
W h a t is the l e a s t n u m b e r of c o m p a r t m e n t s i n t o w h i c h the
w a r e h o u s e m u s t b e p a r t i t i o n e d for saf e s t o r a g e ? T h i s
p r o b l e m c a n b e f o r m u l a t e d as a G T m o d e l in w h i c h a g r a p h
G = (V,E) is d e v i s e d w i t h p o i n t s and lin e s r e p r e s e n t i n g
c h e m i c a l s and i n c o m p a t i b i l i t i e s r e s p e c t i v e l y . The p r o b l e m
r e d u c e s to f i n d i n g a l e a s t - c o l o u r c o l o u r i n g of G. The
m o d e l a l s o has a p p l i c a t i o n in b i n p a cking, e x a m i n a t i o n
timetable construction and resource allocation. Unfortun­
a t e l y the p r o b l e m is N P - C o m p l e t e a n d t hus a h e u r i s t i c
p r o c e d u r e is in order. Various available colouring
h e u r i s t i c s h a v e b e e n c o m p a r e d by M a t u l a et al. [65] and
W i l l i a m s [94].

Mine Ventilator Shaft Location

C o n s i d e r an u n d e r g r o u n d m i n i n g n e t w o r k of t u n n e l s in
w h i c h a v e n t i l a t i o n s y s t e m is to be located. The system
c o m p r i s e s a p u m p and a n u m b e r of units. T h e p u m p is
u s u a l l y s i t e d at the m a i n d e s c e n t shaft. T h e u n i t s are
u s u a l l y l o c a t e d at the c u t t i n g fa c e s (at the e n d s of the
tunnels) a l t h o u g h in an e x t e n s i v e n e t w o r k a d d i t i o n a l units
m a y be sited at i n t e r n a l p o i n t s as w ell. E a c h uni t m u s t
be c o n n e c t e d b y some p a t h of pipes, s o m e t i m e s via
i n t e r m e d i a t e units, to the pump. The c o s t of l a y i n g a pipe
 45

b e t w e e n any two p o i n t s in the n e t w o r k is k n o w n . The

p r o b l e m is to d e t e r m i n e h o w to c o n n e c t all the u n i t s to the
p u m p w i t h m i n i m a l l a y i n g cost. T h i s p r o b l e m c a n be
f o r m u l a t e d as a GT m o d e l in w h i c h a w e i g h t e d g r a p h G = (V,E)
is d e v i s e d w i t h p o i n t s r e p r e s e n t i n g all p o s s i b l e s i t e s and
tunnel i n t e r s e c t i o n s and li n e s r e p r e s e n t i n g all f e a s i b l e
connections between these locations and w e ights r e presenting
lay i n g costs. A s u b s et U <= V is d i s t i n g u s i h e d , r e p r e s e n t i n g
the g i v e n set of l o c a t i o n s of the p u m p a n d the u n i t s (the
p u m p is not s p e c i a l l y d i s t i n g u i s h e d ) . T h e p r o b l e m r e d u c e s
to f i n d i n g a s u b g r a p h of G of l e a s t c o s t w h i c h s p a n s U i.e.
that c o n t a i n s a p a t h b e t w e e n e v e r y p a i r of p o i n t s in U.
The p r o b l e m is k n o w n as S t e i n e r ' s P r o b l e m in G r a p h s and
is N P - C o m p l e t e . T a k a h a s h i a n d M a t s u y a m a [87] h a v e d e v i s e d
an e f f i c i e n t h e u r i s t i c for the p r o blem.

The F a c i l i t i e s Layo u t P r o b l e m

T h e i m p o r t a n t i n d u s t r i a l p r o b l e m of p l a n t l a y o u t has
r e c e i v e d s i g n i f i c a n t a t t e n t i o n in the l ast two d e c a d e s .
A n i m p o r t a n t s tep in the p l a n t l a y o u t p r o c e s s is the
s p e c i f i c a t i o n of w h i c h f a c i l i t i e s a r e to be a d j a c e n t . It
is a s s u m e d h e r e th a t the f a c i l i t i e s a r e to b e l o c a t e d
o n a s i m p l y - c o n n e c t e d p l a n e r e g i o n s uch as a f a c t o r y
floor or flat b u i l d i n g site. This p r oblem has been given
d i f f e r e n t n a m e s by d i f f e r e n t a u t h o r s e.g. " p l a n t l a y out":
F o u l d s and R o b i n s o n [35], [36], A p p l e [2], M o o r e [68],
H i l l i e r and C o n n o r s [49]; " f a c i l i t i e s a l l o c a t i o n " , Buffa,
Armour, and V o l l m a n [12], a n d " l a y o u t p l a n n i n g " , H u t h e r
[72]. In this p a p er w e a d o p t the t i t l e f a c i l i t i e s l a y o u t
p roblem (FLP).

M a n y of the a r t i c l e s jus t m e n t i o n e d a re c o n c e r n e d w i t h
the layout of m a n u f a c t u r i n g p lants. H o w e v e r F L P fi n d s
a p p l i c a t i o n in m a n y o t h e r a r e a s s uch as the d e s i g n of
s ervice f a c i l i t i e s suc h as f i r e stati o n s , l i b r a r i e s , banks,
un i v e r s i t i e s , and h o s p i t a l s ; a n d o t h e r i n s t i t u t i o n s s u c h
as o f f i c e b l o c k s a n d s p o r t s c o m p l e x e s . W h e n the a r e a to
be laid out is a s i n g l e fl o or of a b u i l d i n g s u c h as a
f a c t o r y or o f f i c e block, the l a y o u t r e s u l t s in a
p a r t i t i o n of the floor into a n u m b e r of a r e a s or rooms.

We b e g i n by p r e s e n t i n g an F L P f o r m u l a t i o n d u e to
Hi l l i e r and C o n n o r s [49]. If the a r e a s r e q u i r e d for the
different facilities have significant variation, partition
eac h f a c i l i t y into a n u m b e r of s u b f a c i l i t i e s all w i t h
eq ual area. The planar site is t h e n d i v i d e d up in the
f orm of a g rid of e l e m e n t a l a r e a s c a l l e d l o c a t i o n s
each of the size of the s u b f a c i l i t i e s .

T h e p r o b l e m t hen is to l o c a t e the s u b f a c i l i t i e s ,
guaranteeing that all the s u b f a c i l i t i e s of e a c h f a c i l i t y
are a d j a c e n t in a c o n v e n i e n t c o n f i g u r a t i o n and m a t e r i a l s
h a n d l i n g costs are m i n i m i z e d .
 46

Let n = t h e n u m b e r of s u b f a c i l i t i e s ,
= the n u m b e r of a v a i l a b l e l o c a t i o n s on the
p l a n a r site,
cij = the c o s t p e r u n i t t i m e for a s s i g n i n g s u b ­
f a c i l i t y i to l o c a t i o n j ,
= the d i s t a n c e or c os t of t r a v e l f r o m l o c a t i o n
i to l o c a t i o n j ,
f^j = the w o r k f l o w f r o m s u b f a c i l i t y i to
subfacility j .
= the set of l o c a t i o n s to w h i c h s u b f a c i l i t y i
m a y be f e a s i b l y a s s i g n e d .
a. = f..d. if i / k or j ^ r
ijkr lk jr J
f ii<3.j j + c^j if i = k a n d j = r, a n d
x . . = 1 if s u b f a c i l i t y i is a s s i g n e d to l o c a t i o n
^ j, 0 o t h e r w i s e .
If t h e r e a r e m o r e l o c a t i o n s t h a n s u b f a c i l i t i e s , a
n u m b e r of d u m m y f a c i l i t i e s c a n be i n t r o d u c e d w i t h zero cij
a n d fij v a l u e s to m a k e t h e n u m b e r s equal. fij v a l u e s are
set e q u a l to r e l a t i v e l y h i g h l e v e l s for s u b f a c i l i t i e s i and
j of t h e same f a c i l i t y to e n s u r e t h e i r a d j a c e n c y . Cij
v a l u e s are set to r e l a t i v e l y h i g h v a l u e s w h e n j J? S-^.

T h e p r o b l e m t h e n is to
n n n n
Minimize 7 I 1 I a ijkr
. ., x . .
lj kr (1)
j=l k=l i = l
n
su b j e c t to I x .. = 1 j = 1,2,. . . ,n, (2)
i=l
n
I X .. = 1 i = 1,2,. . . ,n, (3)
ID
j=l
- 0 or 1, i = 1,2, . . . ,n, (4)
X ij
j = 1,2, . . . ,n.
{1) —(4) is a q u a d r a t i c a s s i g n m e n t p r o blem, Q A P .
U n f o r t u n a t e l y QAP is N P - C o m p l e t e . So w e d e v e l o p a
c a n o n i c a l FLP f o r m u l a t i o n w h i c h m a y l e a d to u s e f u l
h euristic solution procedures.

T h e FLP w i l l n o w be f o r m u l a t e d in t e r m s of g r a p h
theory. It is a s s u m e d t h a t a r e l a t i o n s h i p c h a r t is
a v a i l a b l e w h i c h s u m m a r i z e s the d e s i r a b i l i t y of s i t i n g
e a c h p air of f a c i l i t i e s a d j a c e n t l y . Let

w. . = t h e c l o s e n e s s r a t i n g for s i t i n g f a c i l i t i e s i
1 -* a n d j a d j a c e n t l y , a s s u m e d to be a rea l number,
 47

n = the n u m b e r of f a c i l i t i e s ,
V = the set of f a c i l i t i e s ,
N = the set of p a i r s of f a c i l i t i e s w h i c h m u s t be
a d j a c e n t in a n y f e a s i b l e solut i o n ,
F = the set of p a i r s of f a c i l i t i e s w h i c h c a n n o t be
a d j a c e n t in a n y f e a s i b l e s o l u t i o n , a n d
E = (V&V)\(VUF) = t h e set of p o s s i b l e a d j a c e n c i e s
i.e. the set of a l l c o n c e i v a b l e a d j a c e n c i e s
(denoted by the u n o r d e r e d p a i r V&V) less the set
NUF of a d j a c e n c i e s w h o s e f a t e h a s b e e n d e c i d e d .
C o n s i d e r the l a y o u t in F i g u r e 1. The area occupied by each

r~ — ------------------------------------- 1

F i g u r e 1. A b l o c k l a y o u t a n d its a s s o c i a t e d p l a n a r
graph.
 48

f a c i l i t y has a s s o c i a t e d w i t h it the p o i n t of a graph. If

t w o f a c i l i t i e s are a d j a c e n t (i.e. t h e i r b o u n d a r i e s m e e t
at m o r e t h a n a sin g l e point) t h e i r p o i n t s pi and pj are
j o i n e d b y the line {pi,pj} w h i c h i n t e r s e c t s o n l y t h e i r
common boundary. T h i s r e s u l t s in a d r a w i n g of a g r a p h
w h i c h d e p i c t s the a d j a c e n c y s t r u c t u r e of the layout. Note
t h a t the r e g i o n e x t e r i o r to t h e p l a n e s ite is c o n s i d e r e d
to b e a f a c i l i t y - it m a y be d e s i r a b l e to l o c a t e some
f a c i l i t i e s a d j a c e n t to t h e b o u n d a r y . It b e c o m e s a p p a r e n t
t hat w e c a n p o s e the F L P as a g r a p h - t h e o r e t i c p r o b l e m
by d e f i n i n g a w e i g h t e d g r a p h (G,w) w h e r e G = ( V , E ) . V
and E h a v e b e e n d e f i n e d e a r l i e r . T h e p r o b l e m is to

(5)
{i , j } eE
s u b j e c t to (V , E ' U N ) is a m a x i m a l p l a n a r g r a p h (6 )

{i,j}eN, (7)

{i,j}eF, (8 )
where 1 if f a c i l i t i e s i a n d j a r e l o c a t e d a d j a c e n t l y

0 otherwise
and
E' = {{i ,j } : x ij = 1, {i ,j }eE}.

A s all c l o s e n e s s r a t i n g s a r e n o n - n e g a t i v e , as m a n y
a d j a c e n c i e s as p o s s i b l e s h o u l d be made. T h i s m e a n s that
a n y o p t i m a l s o l u t i o n w i l l c o r r e s p o n d to a m a x i m a l p l a n a r
graph.

O n e of the fi r s t p a p e r s u s i n g thi s a p p r o a c h w a s
p r o d u c e d by L e v i n [59]. T h e n K r e j c i r i k [54], d e v e l o p e d
w h a t he c a l l e d the R U G R a l g o r i t h m , the fi r s t g r a p h -
t h e o r e t i c heu r i s t i c . T h e r e f o l l o w e d a s e r i e s of p a p e r s
by S e p p a n e n and M o o r e [83], M o o r e and C a r r i e [69], and
M o o r e [68] w h i c h f u r t h e r d e v e l o p e d the a p p l i c a t i o n
of g r a p h t h e o r y to FLP. C arrie, Moore, R o c z n i a k and
S e p p a n e n [16] s u m m a r i z e d the i deas of t h i s s e ri es and
p r e s e n t e d a g r a p h - t h e o r e t i c h e ur i s t i c .

The m e t h o d b e g i n s by f o r m i n g a w e i g h t e d g r a p h of the
r e l a t i o n s h i p s b e t w e e n f a c i l i t i e s w h o s e p o i n t s and w e i g h t s
represent facilities and closeness ratings respectively.
An a t t e m p t is t h e n m a d e to i d e n t i f y a m a x i m a l p l a n a r
s u b g r a p h of r e l a t i v e l y h i g h w e i g h t . (Four d i f f e r e n t
st r a t e g i e s for l in e s e l e c t i o n a r e e x p l o r e d by the
a u t h o r s .)

T h i s s u b g r a p h is t h e n r e d r a w n to r e f l e c t the
r e l a t i o n s h i p i n t e n s i t i e s in a f o r m c a l l e d a r e l a t i o n s h i p
d i a g r a m i n t r o d u c e d b y M u t h e r [72]. Another graph called
 49

the dua l is the n c o n s t r u c t e d f r o m t h i s r e d r a w n s u b g r a p h .

T h i s d ua l g r a p h r e p r e s e n t s a l a y o u t a p a r t f r o m t h e fact
that sha p e s and a r e a s h a v e n o t b e e n t a k e n i n t o acc o u n t .
T he last step of the m e t h o d a t t e m p t s to a c c o m m o d a t e t h e s e
in f o r m i n g a layout b l o c k p l a n fro m t h e dual. In o r d e r
to f a c i l i t a t e the use of g r a p h s the a u t h o r s u s e s t r i n g
p r o c e s s i n g grammars .

Another graph-theoretic approach has been developed

by F o u l d s and R o b i n s o n [36]. Their heuristic circumvents
the p r o b l e m of h a v i n g to t es t v a r i o u s p r o m i s i n g h i g h - w e i g h t
s u b - g r a p h s for p l a n a r i t y . T h i s is a c h i e v e d b y c o n s t r u c t i n g
a series of s pecial g r a p h s c a l l e d d e l t a h e d r a w h i c h a r e
al w a y s m a x i m a l plan a r . T h e final d e l t a h e d r o n r e p r e s e n t s
a la y o u t tha t is h o p e f u l l y of h i g h q u a l i t y . A t this
sta g e an i m p r o v e m e n t p h a s e is u s e d to i d e n t i f y p o t e n t i a l
i m p r o v e m e n t s in the f o r m o f l i n e r e p l a c e m e n t or p o i n t
relabelling. T he h e u r i s t i c h a s b e e n p r o g r a m m e d in P a s c a l
to run o n a B u r r o u g h s B 6 7 0 0 . * T w o c r i t e r i a h a v e b e e n u s e d
to jud g e its worth: (1) s o l u t i o n q u a l i t y a n d (2) c o m p u t a ­
tional speed. In o r d e r to be abl e to e x p l o r e (1) it is
i m p o r t a n t to be a b l e to c o m p a r e the v a l u e s of the
solutions produced with either optimal solution values
of u p per b o u n d s the r e o f . Of c o u r s e for l a r g e t e s t p r o b l e m s
o p t i m a are u n a v a i l a b l e . H o w e v e r a n u p p e r b o u n d o n the
o p t i m a l s o l u t i o n v a l u e c a n be c a l c u l a t e d as follows:
It is w e l l - k n o w n t h a t a p l a n a r g r a p h w i t h n p o i n t s c a n
h a v e no m o r e t h a n (3n-6) lines. T h u s an o b v i o u s u p p e r
b o u n d on the v a l u e of a n y o p t i m a l s o l u t i o n is the s u m of
the w e i g h t s o f the (3n-6) h e a v i e s t lines.

T a b l e 1 d i s p l a y s t h e s e q u a n t i t i e s for t e s t p r o b l e m s
w i t h r a n d o m l y g e n e r a t e d d a t a w h e r e t h e r e h a s b e e n no
a t t e m p t to i m p r o v e the f inal s o l u t i o n . The s t a n d a r d
d e v i a t i o n of the w e i g h t s for e a c h p r o b l e m is a l s o given.
The b o u n d b e c o m e s p r o g r e s s i v e l y m o r e b l u n t as the n u m b e r
of f a c i l i t i e s incre a s e s . It c a n be see n t h a t the h e u r i s t i c
seems to y i e l d c o n s i s t e n t l y g o o d q u a l i t y s o l u t i o n s to the
mo del of e q u a t i o n s (5)-(8).

R e t u r n i n g to the q u e s t i o n of c o m p u t a t i o n a l s p e e d
it has b e e n shown by G r i f f i n [41] t h a t the h e u r i s t i c is
of p o l y n o m i a l order. I n de e d the n u m b e r o f e l e m e n t a r y
c o m p u t a t i o n a l steps t a k e n to s o l v e a p r o b l e m is
p r o p o r t i o n a l to

9 n 2 + 9 n l o g 3 n + 6n - 40

*Footnote: The author is grateful to Dr P.B. Gibbons of the Computer

Science Department, University of Auckland, New Zealand, who wrote
the program, and to his own doctoral student, J. Giffin, who
gathered the computational statistics.
 50

Problem Upper Deltahedron CPU

No. n 0 Bound Solution % T i m e (Secs)

1 10 5 2504 2483 99.16 0.27

2 10 10 2649 2593 97. 88 0.20
3 10 15 2670 2637 98 . 7 6 0.19
4 10 20 2725 2668 9 7.90 0.20
5 20 5 5709 5629 98.60 0.64
6 20 10 5997 5824 97.12 0.63
7 20 15 6245 6003 96 .12 0.65
8 20 20 6655 6324 95 . 0 3 0.64
9 20 25 7114 6699 94.17 0.66
10 30 5 9021 8858 98.19 1.08
11 30 10 9 581 9267 96.72 1.13
12 30 15 1 0135 9718 95.89 1.10
13 30 20 1 0962 10376 94 . 6 5 1.09
14 30 25 11490 10703 93 . 1 5 1.09
15 40 5 12349 12083 97.85 1.75
16 40 10 13212 12658 95 . 8 1 1.76
17 40 15 14057 13220 94 .05 1.76
18 40 20 14957 13803 92.28 1.80
19 40 25 15 9 5 3 14704 92.17 1.82

T a b l e 1. C o m p u t a t i o n a l R e s u l t s for the D e l t a h e d r o n
Algorithm

w h e r e n is t h e n u m b e r of f a c i l i t i e s .

T h e g r a p h t h e o r e t i c a p p r o a c h d o e s not i n i t i a l l y t ake
sh a p e s or a r e a s of f a c i l i t i e s i nto a c c o u n t . H o w e v e r t here
is some m e r i t in a l l o w i n g a n a n a l y s t to input a n y non-
q u a n t i f i a b l e k n o w l e d g e he h a s at this point. As the grap h -
t h e o r e t i c m e t h o d s t e r m i n a t e at this s t a g e t h e y d o p e r m i t
manual adjustment. T h e i n f l u e n c e of f a c i l i t y s h a p e s has
b e e n s t u d i e d b y S t e a d m a n [84],

T h e r e is a n o t h e r f a c t o r w h i c h m a k e s the g r a p h - t h e o r e t i c
a p p r o a c h of i n t e r e s t to l a y o u t e n g i n e e r s . It is s t r a i g h t ­
fo r w a r d to c a l c u l a t e an u p p e r b o u n d o n the v a l u e of a n y
f e a s i b l e s o l u t i o n (given an o b j e c t i v e of m a x i m i z a t i o n ) to
a s p e c i f i c FLP p r o b l e m i n s t a n c e u s i n g g r a p h - t h e o r e t i c
met h o d s . A b e n c h m a r k of t his sort is o f t e n a v a l u a b l e
p i e c e of i n f o r m a t i o n for t h e d e s i g n e r . I n d e e d C a r r i e et al.
[16] p r e d i c t t h a t "the d e f i n i t i o n of the u p p e r b o u n d s of
f e a s i b l e s o l u t i o n s m a y be t h e m o s t i m p o r t a n t c o n t r i b u t i o n
to f a c i l i t i e s d e s i g n m a d e b y g r a p h t h e o r y . "

4. DIGRAPH METHODS

A d i r e c t e d g r a p h or d i g r a p h for s hort is a g r a p h in
w h i c h e a c h line has b e e n g i v e n a d i r e c t i o n . The lines
have a r r o w s a t t a c h e d to t h e m to i n d i c a t e t h e i r d i r e c t i o n
and are c a l l e d a r c s .
 51

M a n y r e a l - w o r l d s y s t e m s w h i c h O.R. a n a l y s t s s t u d y
can be m o d e l l e d as a b i n a r y r e l a t i o n b e t w e e n t h e e l e m e n t s
of the system. S i n c e t h i s is w h a t a d i g r a p h is, d i g r a p h
t h e o r y (DT) c a n o f t e n be a p p l i e d to a n a l y s e O.R. p r o b l e m s
i n c l u d i n g t h o s e in M a r k o v p r o c e s s (see R o s e n b l a t t [82]
an d H o w a r d [50]), g a m e t heory, job s e q u e n c i n g , a s s e m b l y
line ba l a n c i n g , t r a n s p o r t a t i o n , a n d r e s o u r c e p l a n n i n g .
In t his s e c t i o n w e d i s c u s s e f f e c t i v e DT m o d e l s a n d m e t h o d s
for c e r t a i n O.R. p r o b l e m s .

Game T h e o r y
G a m e t h e o r y h a s d e v e l o p e d i n t o an i m p o r t a n t O.R. too l
over the last 40 y e a r s as it c a n be u s e d to f i n d the b e s t
w a y to p e r f o r m a set of t a s k s in a c o m p e t i t i v e e n v i r o n m e n t .
The "games" i n v o l v e d c a n be c l a s s i f i e d a c c o r d i n g to: the
nu m b e r of "players", w h e t h e r t h e r e is a s t o c h a s t i c e l e m e n t ,
w h e t h e r c o m p l e t e i n f o r m a t i o n on the p o s i t i o n of the g a m e
is a v a i l a b l e at e v e r y move, a n d w h e t h e r t h e r e is a f i n i t e
nu m b e r of m o v e s a v a i l a b l e at e a c h p o s i t i o n . The theory
of d i g r a p h s is of l i m i t e d u s e in t h e m o r e g e n e r a l cases.
H o w e v e r it can p r o v i d e a u s e f u l a p p r o a c h , if n o t a c o m p l e t e
analysis, for t w o - p e r s o n , p e r f e c t i n f o r m a t i o n , d e t e r m i n ­
istic, f i n i t e games. S u c h a g a m e c a n be m o d e l l e d b y a
game d i g r a p h with points and arcs r e p resenting positions
and legal m o v e s r e s p e c t i v e l y . A game digraph has a
unique s t a r t i n g p o i n t represe n t i n g the initial position
and at least one c l o s i n g p o i n t r e p r e s e n t i n g a p o s i t i o n
at w h i c h the g a m e is t e r m i n a t e d . T h e c l o s i n g p o i n t s are
c l a s s i f i e d a c c o r d i n g to e a c h o u t c o m e t h e y r e p r e s e n t s u c h
as "win for p l a y e r A', "draw", a n d "win for p l a y e r B " .
Most g ame d i g r a p h s a r e a c y c l i c , b u t w h e n c y c l e s are
p r e s e n t the r e are r u l e s to p r e v e n t e n d l e s s c y c l e t r a v e r s a l .
E a c h p l a y e r t r i e s to f ind a d i r e c t e d p a t h f r o m the
s t a r t i n g p o i n t to a c l o s i n g p o i n t w h i c h r e p r e s e n t s a w i n
for him/her. W h a t (s)he is c o n c e r n e d a b o u t is, g i v e n
the g ame has r e a c h e d a c e r t a i n point, can (s)he f o r c e
a win. If eith e r p l a y e r c a n c l a i m t his the p o i n t
(position) is said to b e wo n , as it is a s s u m e d t h a t e a c h
pla y e r m a k e s the b e s t p o s s i b l e m o v e at e ach point. The
con c e p t of the k e r n e l of a d i g r a p h is u s e f u l in f i n d i n g
a w i n n i n g strategy. A set of p o i n t s K in a d i g r a p h is
termed a k e r n e l if (1) no two p o i n t s in K a r e j o i n e d b y an
arc, (2) e v e r y p o i n t v n o t in K is j o i n e d b y an arc (v,k)
to some p o i n t k e K. The f o l l o w i n g t h e o r e m is of inte r e s t .

Theorem: E v e r y a c y c l i c d i g r a p h has a u n i q u e kernel.

A s s u m e the p l a y e r w h o m a k e s the fi r s t m o v e is
labelled A, the o t h e r player, B. A s s u m e f u r t h e r t hat
the p l a y e r w h o m a k e s the last m o v e is the wi n n e r . Then
we have the i m p o r t a n t result:
 52

T h e o r e m : If the s t a r t i n g p o i n t is not in the k e r n e l of the

g a m e d i g raph, p l a y e r A is a s s u r e d of a w i n a n d A can w i n by
a l w a y s s e l e c t i n g p o i n t s in K.

T h i s t h e o r e m h a s the c o r o l l a r y tha t if the s t a r t i n g

p o i n t is in the k e r n e l B is a s s u r e d of a w i n by a l w a y s
s e l e c t i n g p o i n t s in K. For f u r t h e r r e a d i n g on t h i s to p i c
see B e r g e [8], B u s a c k e r a n d S a a t y [13], and K a u f m a n n [51].

Production Planning and Control

O n e of t h e m o s t c o m m o n u s e s of d i g r a p h s in O.R.
concerns depicting PERT and CPM relationships. The d i g r a p h
d e p i c t i n g the p r e c e d e n c e r e l a t i o n s h i p s is s t r i c t l y s p e a k i n g
a network, b u t w e i n c l u d e it in the p r e s e n t s e c t i o n as it
is n o t c l e a r h o w t h e t h e o r y o f n e t w o r k f l o w s a i d s the
an a l y s i s . T h e r e are a n u m b e r of a d v o c a t e s for e a c h of the
two a p p r o a c h e s : a c t i v i t y - o r i e n t e d d i g r a p h s w i t h p o i n t s
representing activities and event-oriented digraphs with
p o i n t s r e p r e s e n t i n g even t s . The latter representation
has the a d v a n t a g e t h a t a c t i v i t y n u m b e r s i n d i c a t e s e q u e n t i a l
r e l a t i o n s h i p s w h i c h m a k e s it the m o r e e f f i c i e n t for s o l ­
ution by computer. H o w e v e r t hi s o f t e n m e a n s t h a t d u m m y
a c t i v i t i e s h a v e to b e i n t r o d u c e d .

A p a r t f r o m th e a c t u a l s c h e d u l i n g of a c t i v i t i e s it is
o f t e n u s e f u l to c o n s t r u c t the d i g r a p h (which is the p r e ­
c e d e n c e diagram) for the p u r p o s e s of a s s e m b l y line b a l a n c ­
ing. O n e c o m m o n p r o b l e m in t h i s a r e a r e q u i r e s the tas k s to
b e a r r a n g e d in a s e r i e s of w o r k s t a t i o n s so as to m i n i m i z e
the n u m b e r of s t a t i o n s r e q u i r e d w i t h o u t v i o l a t i n g the
precedence constraints. C h a c h r a et al. [18] sho w h o w the
t h e o r y of d i g r a p h s c a n be a p p l i e d to s o l v e t his problem.
T h o s e a u t h o r s a l s o go o n to c o n s i d e r v a r i o u s o t h e r
p r o b l e m s in i n d u s t r i a l e n g i n e e r i n g s u c h as d e t e r m i n i n g
h ow m a n y of w h a t s u b c o m p o n e n t s m u s t be f a b r i c a t e d to m a k e
a g i v e n n u m b e r of final p r o d u c t s , the d e t e r m i n a t i o n of
w h i c h p r o c e s s is b e s t to m a k e a g i v e n pr o d u c t , g o o d s
s h i p m e n t s c h e d u l i n g (the t r a n s p o r t a t i o n p r o b l e m ) , and
various organizational problems. T h e y r e p r e s e n t e a c h of
t h e s e p r o b l e m s in t e r m s of d i g r a p h s and e a c h m o d e l is a
u s e f u l w a y to v i s u a l i z e the p r o b l e m . H o w e v e r it is
n ot c l ear h o w the t h e o r y of d i g r a p h s c a n be u s e d to solve
the problems.

5. NETWORKS

S t u d y of O.R. n e t w o r k t h e o r y (NT) m o d e l s has b e e n

g i v e n an i m p o r t a n t b o o s t s i n c e G e o r g e D a n t z i g ' s prim a l
s i m p l e x a l g o r i t h m [24] w a s s p e c i a l i z e d to the s i m p l e x
m e t h o d on a graph. N e t w o r k o p t i m i z a t i o n has b e c o m e an
 53

i m p o r t a n t p r a c t i c a l b r a n c h of m a t h e m a t i c a l p r o g r a m m i n g and
n e t w o r k m o d e l s are use d as a f u n d a m e n t a l p l a n n i n g t o o l in
O.R. a p p l i c a t i o n a r e a s ( d etailed l a t e r ) . S p e c i a l i z e d
network algorithms are routinely solving models with
t h o u s a n d s of c o n s t r a i n t s and m i l l i o n s of v a r i a b l e s a n d
are thus p u s h i n g b a c k the f r o n t i e r s o f l a r g e - s c a l e
o p t i m i z a t i o n . W e d i s c u s s the r e p r e s e n t a t i v e s a m p l e of
NT m o d e l s ant m e t h o d s f r o m t h i s v a s t field. A n u m b e r of
a p p l i c a t - o n s of t h e s e m o d e l s a r e p r e s e n t e d . Further
e x a m p l e s of p r o b l e m s f o r m u l a t e d in t e r m s of n e t w o r k s are
g i v e n in the s u r v e y of K e n n i n g t o n a n d H e l g a s o n [52].

The C a p a c i t a t e d T r a n s s h i p m e n t P r o b l e m (CTP)

C o n s i d e r a d i g r a p h D = (V,A) in w h i c h it is d e s i r e d
to send a c o m m o d i t y b e t w e e n v a r i o u s p o i n t s at m i n i m a l t o t a l
cost. E a c h arc ha s a c o s t per u n i t o f flow, a n d a
c a p a c i t y to a c c o m m o d a t e flow. E a c h p o i n t i is a s s u m e d
to o b e y a f low b a l a n c e law, i.e. t h e a m o u n t of the
c o m m o d i t y f l o w i n g int o it e q u a l s the a m o u n t f l o w i n g o u t of
it, e x c e p t for a q u a n t i t y bi. Let:
u^j = the c a p a c i t y of a r c (i,j),
xij = the a m o u n t of f l o w s e n t a l o n g a r c (i,j),
bi = the s u p p l y of t h e c o m m o d i t y at p o i n t i. (Each
po int i for w h i c h bi < 0 is i n t e r p r e t e d as a
d e m a n d of -bi units.)

T h e C T P p r o b l e m c a n be f o r m u l a t e d as

Minimize I c . .x . .
(i ,j )€A ID ID

s ubje ct to I x .. I x ..= b ., for all i£V,

ID
j j
(i ,j )€A (j ,i)€A
0 < x . ■< u . . for all (i,j )€ A ,
iD ID
A n u m b e r of o t h e r mod e l s , s o m e we h a v e a l r e a d y seen,
turn out to be spe c i a l c a s e s of the a b o v e m o d e l . These
include: (i) the t r a n s p o r t a t i o n p r o blem, in w h i c h e v e r y
point is eit h e r a p r o p e r s o u r c e or a p r o p e r s ink a n d Uij=°
for all (i,j)£A, (ii) t h e s h o r t e s t p a t h p r o b l e m in
w h i c h bi = 1 or -1 for e a c h i £ V a n d uij = 00 for all
(i,j)£A, (iii) the m a x i m u m f l o w p r o b l e m in w h i c h bi=l
for e x a c t l y one i€V, b i = - l for e x a c t l y o n e i V a n d b i=0
o therw i s e . (iv) the m i n i m u m cos t f l o w p r o b l e m w h i c h is
a c o m b i n a t i o n o f (i) and (iii) , and (v) the a s s i g n m e n t
p r o b l e m w h i c h is a spe c i a l c a s e of (i). T h e C T P
a l g o r i t h m to be d i s c u s s e d h e r e is u s u a l l y so e f f i c i e n t
 54

t h a t t h e r e is o f t e n no n e e d to u s e a s p e c i a l a l g o r i t h m for
t h e s e s p e c i a l i z e d cases.

T h e m a t r i x f o r m o f t h e C T P is

Minimize CX
s u b j e c t to A X = B,
0 < X < U.

T h e m a t r i x A is the i n c i d e n c e m a t r i x for D. T h u s t h e CTP

is an u p p e r - b o u n d e d LP w i t h a v e r y s p e c i a l s t r u c t u r e . T his
s t r u c t u r e g i v e s r i s e to the f o l l o w i n g th e o r e m .

T h e o r e m (The B a s i s T r e e T h e o r e m ) : A set of c o l u m n s o f A
c o m p r i s e a b a s i s <=> the c o r r e s p o n d i n g set of a r c s f orm a
s p a n n i n g t r e e of the u n d i r e c t e d g r a p h d e r i v e d f r o m D.

This theorem allows the upper bounded revised simplex

m e t h o d to b e u s e d to s o l v e t h e C T P v e r y e f f i c i e n t l y . This
h a s b e e n d o n e by B r a d l e y , Brown, a n d G r a v e s [11] w h o h a v e
a v a i l a b l e a p r i m a l n e t w o r k c o d e c a l l e d GNET. T h e u s e of
g r a p h t h e o r y in m o d i f y i n g t h e s i m p l e x m e t h o d is fu l l y
d e t a i l e d in K e n n i n g t o n and H e l g a s o n [52].

T h e r e is a n o t h e r m e t h o d for the CTP, c a l l e d the o u t -

of-kilter method, w h i c h w a s d e v e l o p e d by F u l k e r s o n [39].
U n l i k e the m e t h o d jus t m e n t i o n e d it w a s d e v i s e d s o l e l y
for C T P a n d is not a s p e c i a l i z a t i o n of a m o r e g e n e r a l
method. The m e t h o d b e g i n s w i t h a f e a s i b l e s e t of flows
a n d a set to d u a l v a r i a b l e s . It c o m p r i s e s two phases:
o n e in w h i c h c h a n g e s are m a d e to flows, the o t h e r in
w h i c h c h a n g e s are m a d e to t h e d u a l v a r i a b l e s . After
an i t e r a t i o n of e a c h p h a s e a n e x a m i n a t i o n is m a d e of e ach
arc in the network. C o n d i t i o n s for o p t i m a l i t y (based on
the K u h n - T u c k e r co n d i t i o n s ) m u s t be s a t i s f i e d b y e a c h arc.
A r c s w h i c h o b e y the c o n d i t i o n s a r e said to be in k i l t e r
and tho s e w h i c h are not, ou.t o f k i l t e r . At each iteration
an arc has its sta t u s c h a n g e d p e r m a n e n t l y to in kilter.
W h e n all a rcs a r e in this s t a t e the o p t i m a l s o l u t i o n is
at hand.

C o m p u t a t i o n a l e x p e r i e n c e c o m p a r i n g t h e two a l g o r i t h m s
has b e e n r e p o r t e d by Barr, Glover, and K l i n g m a n [4],
G l o v e r a n d K l i n g m a n [42]. T h e r e is c o n f l i c t i n g e v i d e n c e
as to w h i c h is superior.

The M u l t i c o m m o d i t y Network Flow Problem

T his p r o b l e m is s i m i l a r to the last e x c e p t that

s e veral d i f f e r e n t c o m m o d i t i e s are sent b e t w e e n the poin t s
of the n e t work. T h e p r o b l e m can be m o d e l l e d as
 55

K
Minimize
I ckxk r
k=l

AXk , k = 1,.2, ,K ,

m
ii
K
I D k X k < R,
k=l

0 < xk < uk , k = 1,r2 , , K

A is o n c e a g a i n the i n c i d e n c e m a t r i x and the D a r e d i a g o n a l

m at r i c e s . The jth c o m p o n e n t of R is the m u t u a l a r c c a p a c i t y
of the a p p r o p r i a t e arc, to be s h a r e d a m o n g the K c o m m o d ­
ities. K e n n i n g t o n a n d H e l g a s o n [52] d e s c r i b e in d e t a i l
two of the m o s t c o m m o n a l g o r i t h m s for t h e p r o b l e m w h i c h
t ake a d v a n t a g e of its s p e c i a l s t r u c t u r e .

CTP w it h side c o n s t r a i n t s

T h e f o l l o w i n g m o d e l is a s p e c i a l i z a t i o n o f C T P in
w h i c h t h e r e are f u r t h e r r e s t r i c t i o n s o v e r a n d a b o v e arc
c a p a c i t y and f low b a l a n c e :

Minimize CX + EZ,
s ubject to AX = B,
SX + PZ = R,
0 < X < U, 0 < Z < V.
A is o n c e a g a i n the i n c i d e n c e m a t r i x b u t S a n d P are
a rbitrary. T h e m e t h o d s for the C T P c a n be m o d i f i e d to
h a n d l e the size c o n s t r a i n t s : SX + PZ = R. T h i s is
a c h i e v e d by p a r t i t i o n i n g t h e b a s i s so t h a t a p o r t i o n of
it c o r r e s p o n d s to a d i r e c t e d s p a n n i n g tree. All
c a l c u l a t i o n s i n v o l v i n g t h i s c o m p o n e n t of t h e b a s i s are
e x e c u t e d v i a l a b e l l i n g o p e r a t i o n s r a t h e r t h a n by m a t r i x
multiplication. (See K e n n i n g t o n a n d H e l g a s o n [52] for
full details.)

CTP with convex costs

The CTP m o d e l can be g e n e r a l i z e d b y r e p l a c i n g the

o b j e c t i v e f u n c t i o n by g(X), a c o n v e x f u n c t i o n of the arc
flows X. Thi s r e s u l t s in a n o n l i n e a r p r o g r a m m i n g
p r o b l e m w i t h specia l str u c t u r e . It c a n be s o l v e d by a
v a r i e t y o f a d a p t e d N L P t e c h n i q u e s , e a c h of w h i c h e x p l o i t
the structure. T h e s e a d a p t i o n s e l i m i n a t e the n e e d for
m a t r i x m a n i p u l a t i o n and all o p e r a t i o n s can b e c a r r i e d out
on the n e t w o r k D. K e n n i n g t o n and H e l g a s o n [52] p r e s e n t
a d a p t i o n s o f p i e c e w i s e linear a p p r o x i m a t i o n , the F r a n k e -
W o l f e method, Z o u t e n d i j k ' s met h o d , a n d the c o n v e x s i m p l e x
method.
 56

T h e r e a r e n u m e r o u s p r e s e n t a t i o n s in the l i t e r a t u r e of
s u c c e s s f u l a p p l i c a t i o n s of n e t w o r k m o d e l s to s o l v e re a l -
w o r l d O.R. pro b l e m s . T h e s e i n c l u d e the t r a n s p o r t a t i o n of
goods, a n a l y s i s an d s y n t h e s i s of t r a n s p o r t a t i o n a n d
c o m m u n i c a t i o n net w o r k s , e q u i p m e n t r e p l a c e m e n t , p r o j e c t
p l a n n i n g , p r o d u c t i o n a n d i n v e n t o r y co n t r o l , m a c h i n e
l oading, b l e n d i n g , a n d m a n p o w e r training, and f i n a n c i a l
and energy planning. G o l d e n a n d M a g n a n t i [44] h a v e a
u s e f u l b i b l i o g r a p h y of the l i t e r a t u r e on d e t e r m i n i s t i c
n e t w o r k o p t i m i z a t i o n t h r o u g h 1977, G l o v e r an d K l i n g m a n
[43] d i s c u s s n e t w o r k a p p l i c a t i o n s in g o v e r n m e n t a n d industry,
and A s s a d [3] s u r v e y s m u l t i c o m m o d i t y n e t w o r k f l o w
techniques.

The L i n e a r M u l t i c o m m o d i t y Mo d e l

R a o and Zio n t s [80] d i s c u s s the g e n e r a l f r a m e w o r k in

w h i c h t his m o d e l has b e e n a p p l i e d to a v a r i e t y of t r an s-
portation-allocation problems. Further applications
i n v o l v e the a l l o c a t i o n of e m p t y f r e i g h t c ars in r a i l w a y s
(White a nd B o m b e r a u l t [91]), t h e r o u t i n e of fuel o i l
t a n k e r s (Bellmore et al. [6]), the r a c i a l d e s e g r e g a t i o n
of s c h o o l s (Clarke a n d S u r k i s [22]), the a n a l y s i s of w a s t e
m a n a g e m e n t s y s t e m s ( P a n a g i o t a k o p o u l o s [76]), a n d p r o b l e m s
in o p e r a t i o n s m a n a g e m e n t ( E l m a g h r a b y [32]).

Communications Networks

In a c o m m u n i c a t i o n s s y s t e m m e s s a g e s p a s s f r o m o n e
s t a t i o n to a n o t h e r v i a c h a n n e l s of g i v e n c a p a c i t y . T his
s y s t e m is o f t e n m o d e l l e d b y a n e t w o r k w i t h flow, points,
a n d arcs r e p r e s e n t i n g m e s s a g e s , stati o n s , a n d c h a n n e l s
respectively. P r o b l e m s of r e a l i z a b i l i t y , anal y s i s , and
s y n t h e s i s g i v e r i s e to l i n e a r m o d e l s and c o m p u t e r
n e t w o r k s giv e ris e to n o n l i n e a r m o d e l s . Flows correspond
to a v e r a g e m e s s a g e r a t e s sent on d i f f e r e n t c h a n n e l s in
s t ore and f o r w a r d c o m p u t e r n e t w o r k s (See F r a t t a et al.
[38]). T h e o b j e c t i v e is to m i n i m i z e the to t a l d e l a y
per m e s s a g e g i v e n c e r t a i n t r a n s m i s s i o n r e q u i r e m e n t s .

S o m e t i m e s it is a p p r o p r i a t e to i n c l u d e a c o n c a v e
o b j e c t i v e function . A s an e x a m p l e Y a g e d [95] has
a d o p t e d a f u n c t i o n to r e f l e c t the economics of sc a l e in
p r o v i d i n g a g i v e n n u m b e r of c h a n n e l s o n a g i v e n link to
s a t i s f y flow r e q u i r e m e n t s . Y a g e d [96] p o s e s a d y n a m i c
m o d e l for the p r o b l e m of m i n i m i z i n g the n e t v a l u e of
i n s t a l l a t i o n costs. Other models with a concave
o b j e c t i v e f u n c t i o n a r i s e in c o m p u t e r r o u t i n g p r o b l e m s
w h e r e c a p a c i t i e s are t r e a t e d as d e c i s i o n v a r i a b l e s and
cos t s are a s s i g n e d to i n s t a l l i n g c a pa c i t y . (See F r a t t a
et al. [38]) .
 57

Traffic Networks

T he t r a f f i c a s s i g n m e n t m o d e l is c o n c e r n e d w i t h an
u r b a n street n e twork . It is a s s u m e d t h a t e a c h d r i v e r
c h o o s e s the p a t h he p e r c e i v e s to be of l e a s t c o s t f r o m
his o r i g i n to his d e s t i n a t i o n and t h a t W a r d r o p ' s
first p r i n c i p l e (Wardrop [90]) h o l d s for e a c h o r i g i n
- d e s t i n a t i o n pair p - q. T h i s p r i n c i p l e states:

T h e t r a v e l c o s t s f r o m p to q o f a n y p a t h s a c t u a l l y
u s e d a r e e q u a l a n d no g r e a t e r t h a n the c o s t o f a n y
u n u s e d path.

T h e o b j e c t i v e is to p r e d i c t the u s e r - o p t i m a l f l o w s (also
cal l e d e q u i l i b r i u m flows) in the n e t w o r k w h i c h w i l l o c c u r
a s s u m i n g this a s s u m p t i o n of d r i v e r b e h a v i o u r . Of c o u r s e
if the arc c a p a c i t i e s are s u f f i c i e n t l y g e n e r o u s and t r a v e l
costs are constant, t h e n e a c h d r i v e r w i l l s i m p l y c h o o s e
the s h o r t e s t p a t h f r o m h i s o r i g i n to his d e s t i n a t i o n .
H o w e v e r in p r a c t i c e e a c h arc o f t e n h a s a t i g h t b o u n d on
its c a p a c i t y to a c c o m m o d a t e flow. This means that travel
cost in the arc is n o n l i n e a r l y d e p e n d e n t u p o n t h e l e v e l of
its flow. T his c a u s e s c o n g e s t i o n a n d m a k e s it h a r d e r to
p r e d i c t the e q u i l i b r i u m flows. T h i s is b e c a u s e t r a v e l
costs r e m a i n u n k n o w n u n t i l f l o w l e v e l s are e s t i m a t e d .
It can be s h o w n t h a t the p r o b l e m of f i n d i n g t h e u s e r
o p t i m a l flows is t h e v a r i a t i o n a l p r o b l e m :

rX . .
Minimize ] 1
A. . (t)dt
(i,j)CA Jo 13
n n
S u b j e c t to D (j ,s) + I x®. = £ x® , j = 1,2, ..., n,
i=l J k=l J s = l,s, ..., n.

n
s
I Xi-j = x i , (i, j) eA,
x=l J
X®. > 0 , (i,j)eA,
ID s = l ,2, ... ,n

w h e r e w e are d e a l i n g w i t h a n e t w o r k D = (V,A) w i t h a set

of n p o i n t s and

A. .(x. .) = the u n i t t r a v e l cos t of a r c (i,j) w h e n it

1 -' 1 -1 c o n t a i n s x^. u n i t s of flow,
x^. = the tot a l f low in arc (i,j),
x?. = the f low in arc (i,j) w i t h d e s t i n a t i o n s,
IDJ andj
D(k,j) = the n u m b e r of d r i v e r s w i t h o r i g i n i and
destination j .
 58

M a n y of the e a r l y t r a f f i c a s s i g n m e n t p r o c e d u r e s
w e r e i n c r e m e n t a l in t h e se n s e t h a t t h e y st a r t w i t h no
f l o w a s s i g n e d and p r o g r e s s i v e l y a l l o c a t e p a t h s to
i n c r e a s i n g p r o p o r t i o n s of the 0 -D t r i p d e m a n d s . When
all f l o w h as b e e n a l l o c a t e d t r a v e r s a l c o s t s are u p d a t e d
a n d the p r o c e s s is r e p e a t e d . T h e a i m is to c o n v e r g e to
e q u i l i b r i u m flows a f t e r a n u m b e r of i t e r a t i o n s . T his
i t e r a t i v e a p p r o a c h r e p r e s e n t s an i m p r o v e m e n t o v e r t h e
e a r l y m e t h o d s s u ch as a l l - o r - n o t h i n g a p p r o a c h of L o u b a l
[62] and the diversion a p p r o a c h o f O v e r g a a r d [74].

One of the fir s t i n c r e m e n t a l t e c h n i q u e s w a s p r o p o s e d

by M a r t i n and M a n h e i m [64]. M a n y i m p r o v e m e n t s a p p e a r e d
s uch as t h o s e of V a n V l i e t [89], D ial [25], and T r a h a n [88].
L a t e r p r o c e d u r e s no l o n g e r use the i n c r e m e n t a l a p p r o a c h
but are o f t e n p r i m a l m e t h o d s p r o d u c i n g m o r e r e a l i s t i c
assignments. T h e s e i n c l u d e B r u y n o o g u e et al. [51] and
D a f e r m o s [23]. More recent procedures using mathematical
op t imization techniques have been developed by Nguyen
[73], L e B l a n c et al. [58], W i g a n and L u k [92], and
W i g a n [93].

O n c e all t r a f f i c t r a v e l s a c c o r d i n g to e q u i l i b r i u m
flow it m a y b e f o u n d t h a t i m p r o v e m e n t s h ave to be m a d e
to the n e t w o r k to m a i n t a i n a d e q u a t e s e r v i c e as u s a g e
increases and road surfaces deteriorate. These improve­
m e n t s o f t e n t a k e the f o r m o f the c o n s t r u c t i o n of a d d i t i o n a l
s treets or the u p g r a d i n g of e x i s t i n g streets. The
o b j e c t i v e of t h e n e t w o r k d e s i g n m o d e l is to i n v e s t funds
s u b j e c t to a b u d g e t i n g c o n s t r a i n t , so as to i m p r o v e
the n e t w o r k in an o p t i m a l fashion, i.e. to r e d u c e
c o n g e s t i o n as m u c h as p o s s i b l e . Many authors including
A b d u l a a l and Le B l a n c [1], a n d F o u l d s [34] h a v e a d op t e d
total user c o s t as a m e a s u r e of c o n g e s t i o n .

The d e s i g n p r o b l e m has the o b j e c t i v e

Minimize / A . . ( x .^ )xt .
/ • ■\ 13 in 13
(1 ,3 ) eA j j j

s u b j e c t to T V c..y.. < B ,
i=l j=l 13 13
i * j
x* . < M y . .
13 *13
y . . = 0 or 1 , i=l,2, ... , n.
1 13
w h e r e c^. = the cos t of i m p r o v i n g arc (i,j) if it a l r e a d y
e x i s t s or of c o n s t r u c t i n g it if it d o e s not,
y - ■= 1 if ar c (i,j) is i m p r o v e d or c on s t r u c t e d , 0
otherwise
B = t h e m a x i m u m a m o u n t that can b e invested,
 59

= the user o p t i m a l f l o w in a r c (i,j)

(x?.)* = the u ser o p t i m a l f l o w in arc (i,j) w i t h
1 -1 d e s t i n a t i o n s,
M = a s u i t a b l y l a r g e number.
S ome of the l i t e r a t u r e on p r o b l e m s of thi s t y p e w i l l
n o w be surveyed. T h e r e is an e x c e l l e n t tex t b y P o t t s a n d
O l i v e r [78] w h i c h h a s d i r e c t r e l e v a n c e . This book
r e p r e s e n t s a cle a r s t a t e m e n t of the b a s i c p r i n c i p l e s
u n d e r l y i n g the t h e o r y a n d a p p l i c a t i o n of n e t w o r k f lows
in t r a n s p o r t a t i o n p r o b l e m s .

A num b e r o f e n u m e r a t i v e m e t h o d s for n e t w o r k d e s i g n
h ave a p p eared. Boyce, Farki, and W e i s c h e d e l [10], F o u l d s
[34] and Los [61] h a v e p r e s e n t e d b r a n c h and b o u n d m e t h o d s
w h i c h do not t a ke c o n g e s t i o n e f f e c t s i n t o a c c o u n t . The
fo l l o w i n g m e t h o d s d o a l l o w for c o n g e s t i o n . S t e e n b r i n k [85]
has an i t e r a t i v e a p p r o a c h b a s e d on f i n d i n g s y s t e m o p t i m a l
flows.

O c h o a - R o s s o [75] d e v e l o p e d a b a s i c m u l t i s t a g e d m i x e d
i nteger p r o g r a m m i n g m o d e l w h i c h is s o l v e d u s i n g B e n d e r ' s
d e c o m p o s i t i o n t e c h n i q u e [7], t a k i n g a d v a n t a g e of t h e
d e c o m p o s a b l e n a t u r e of t h e m u l t i s t a g e p r o b l e m . Bruynooghe
[15] a l s o d e v e l o p e d an i n t e g e r p r o g r a m m i n g m o d e l . The
o b j e c t i v e f u n c t i o n is a c o m b i n a t i o n of c o n s t r u c t i o n c o s t s
and user tra v e l times. A c o n t i n u o u s f u n c t i o n is u s e d to
de r i v e lower b o u n d s b y r e l a x i n g the i n t e g r a l i t y r e q u i r e ­
ments. Le B l anc [57] p r o p o s e d a b r a n c h a n d b o u n d s c h e m e
in w h i c h lower b o u n d s a r e c a l c u l a t e d u s i n g the F r a n k - W o l f e
algori t h m . The r e s u l t is an i t e r a t i v e , g l o b a l l y c o v e r g e n t
a l g o r i t h m for the p r o d u c t i o n of l o w e r b ounds.

C h a n [17] has m o t i v a t e d the use of b r a n c h and

b o u n d t e c h n i q u e s for s o l v i n g n e t w o r k d e s i g n p r o b l e m s .
He r e p o r t s o n a set of m e t h o d o l o g i e s w h i c h c o m b i n e the
v e r s a t i l i t y of the e n u m e r a t i v e t y p e a l g o r i t h m w i t h some
n i c e t i e s of the a l g e b r a i c f o r m u l a t i o n s .

A b d u l a a l a n d Le B l a n c [1] u s e c o n t i n u o u s i n v e s t m e n t
v a r i a b l e s and d e v e l o p an e q u i v a l e n t u n c o n s t r a i n e d n o n ­
l in e a r p r o g r a m m i n g pr o b l e m . They solve this by pattern
s ea r c h w i t h p r o m i s i n g c o m p u t a t i o n a l re s u l t s . In a lat er
paper, Le B l a n c and A b d u l a a l [58] p r e s e n t a n o t h e r
solution procedure which uses one-dimensional search
t e c h n i q u e s b a s e d on s u b g r a d i e n t s . T h i s r e d u c e s the
p r o b l e m to a t r a f f i c a s s i g n m e n t p r o blem. F i n ally,
P e t e r s o n [77] has p r e s e n t e d a n e t w o r k o p t i m i z a t i o n
p r o b l e m w h i c h can be m o d e l l e d w i t h c u t - f l o w r a t h e r than
c o n s e r v a t i o n of flow c o n s t r a i n t s . This approach appears
m o r e e f f i c i e n t for m a n y m u l t i c o m m o d i t y f o r m u l a t i o n s .
 60

6. CONCLUSIONS AND SUMMARY

We h a v e p r e s e n t e d an i n t r o d u c t i o n to the c o m p l e x i t y
of p r o b l e m s in c o m b i n a t o r i a l o p t i m i z a t i o n , g r a p h t h e o r e t i c
m o d e l s and s o l u t i o n p r o c e d u r e s to O.R. m o d e l s r a n g i n g
f r o m the Chinese p o s t m a n 1s p r o b l e m to r o u t i n g in c o m p u t e r
n e t w orks.

It m u s t n o w be c l e a r to the r e a d e r t h a t g r a p h t h e o r y
and its o f f s h o o t s , t h e t h e o r y of d i g r a p h s a n d netwo r k s ,
h a v e b l o s s o m e d not o n l y as a b r a n c h o f m a t h e m a t i c s b u t
a l s o as s y s t e m a t i c t o o l s in O.R. It h a s b e e n s h o w n that
g r a p h t h e o r e t i c m o d e l s o f t e n a f f o r d n e w i n s i g h t int o a
w i d e v a r i e t y of O.R. p r o b l e m s .

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