We study the facial structure of a po[polyhedron associated with the single
node relaxation of network flow problems with additive variable upper boun
ds. This type of structure arises. for example. in production planning prob
lems with setup times and in network certain expansion problems. We derive
several classes of valid inequalities for this polyhedron and give conditio
ns under which they are facet-defining. Our computational experience with l
arge network expansion problems indicates that these inequalities are very
effective in improving the quality of the linear programming relaxations.