The traveling purchaser problem is a generalization of the traveling
salesman problem with applications in a wide range of areas including network
design and scheduling. The input consists of a set of markets and a set of products.
Each market offers a price for each product and there is a cost associated with
traveling from one market to another. The problem is to purchase all products by
visiting a subset of the markets in a tour such that the total travel and purchase
costs are minimized. This problem includes many well-known NP-hard problems
such as uncapacitated facility location, set cover and group Steiner tree problems
as its special cases.
We give an approximation algorithm with a poly-logarithmic worst-case ratio for
the traveling purchaser problem with metric travel costs. For a special case of the
problem that models the ring-star network design problem, we give a constant factor
approximation algorithm. Our algorithms are based on rounding LP relaxation
solutions.