Valid inequalities for the single arc design problem with set-ups

We consider a mixed integer set which generalizes two well-known sets: the single node fixed- charge network set and the single arc design set. Such set arises as a relaxation of feasible sets of general mixed integer problems such as lot-sizing and network design problems.
We derive several families of valid inequalities that, in particular, generalize the arc resid- ual capacity inequalities and the flow cover inequalities. For the constant capacitated case we provide an extended compact formulation and give a partial description of the convex hull in the original space which is exact under a certain condition. By lifting some basic inequalities we provide some insight on the difficulty of obtaining such a full polyhedral description for the constant capacitated case. Preliminary computational results are presented.