The facility location problem with general cost functions

In this paper, we introduce a generalized version of the facility location problem in which the facility cost is a function of the number of clients assigned to the facility. We focus on the case of concave facility cost functions. We observe that this problem can be reduced to the uncapacitated facility location problem. We analyze a natural greedy algorithm for this problem and show that its approximation factor is at most 1.861. We also consider several generalizations and variants of this problem. © 2003 Wiley Periodicals, Inc.