Benders' Decomposition

Benders' decomposition is an optimization technique used to solve large, complex problems by breaking them into smaller, more manageable parts. It separates the problem into a "master problem" (strategic decisions) and one or more "subproblems" (operational decisions). The method iterates between solving these parts: the master problem makes high-level decisions, then the subproblem tests feasibility and suggests adjustments. This cycle continues until an optimal, feasible solution is found. It’s especially useful in fields like logistics, finance, and energy planning, where tackling the entire problem at once would be computationally challenging.