An exact algorithm for the traveling salesman problem with deliveries and collections

In this paper, we describe a new integer programming formulation for the Traveling Salesman Problem with mixed Deliveries and Collections (TSPDC) based on a two-commodity network flow approach. We present new lower bounds that are derived from the linear relaxation of the new formulation by adding valid inequalities, in a cutting-plane fashion. The resulting lower bounds are embedded in a branch-and-cut algorithm for the optimal solution of the TSPDC. Computational results on different classes of test problems taken from the literature indicate the effectiveness of the proposed method. (C) 2003 Wiley Periodicals, Inc.