In this paper, we study the Node Weighted Steiner Tree Problem (NSP).
This problem is a generalization of the Steiner tree problem in the se
nse that vertex weights are considered.; Given an undirected graph, th
e problem is to find a tree that spans a subset of the vertices and is
such that the total edge cost minus the total vertex weight is minimi
zed. We present a new formulation of NSP and derive a Lagrangean bound
which used together with a heuristic procedure solves the NSP. Comput
ational results are reported on a large set of test problems and optim
ality is proven for all the generated instances. (C) 1998 John Wiley &
Sons, Inc.