An LP-based heuristic for two-stage capacitated facility location problems

In this paper, a linear programming based heuristic is considered for a two-stage capacitated facility location problem with single source constraints. The problem is to find the optimal locations of depots from a set of possible depot sites in order to serve customers with a given demand, the optim...

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Veröffentlicht in:The Journal of the Operational Research Society 1999-02, Vol.50 (2), p.157-166
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description In this paper, a linear programming based heuristic is considered for a two-stage capacitated facility location problem with single source constraints. The problem is to find the optimal locations of depots from a set of possible depot sites in order to serve customers with a given demand, the optimal assignments of customers to depots and the optimal product flow from plants to depots. Good lower and upper bounds can be obtained for this problem in short computation times by adopting a linear programming approach. To this end, the LP formulation is iteratively refined using valid inequalities and facets which have been described in the literature for various relaxations of the problem. After each reoptimisation step, that is the recalculation of the LP solution after the addition of valid inequalities, feasible solutions are obtained from the current LP solution by applying simple heuristics. The results of extensive computational experiments are given.
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subjects Algorithms
Applied sciences
Business and Management
Cost allocation
cutting planes
Exact sciences and technology
facility location
Fixed costs
Flows in networks. Combinatorial problems
Heuristic
Heuristics
Industrial plant locations
Integers
Lagrangian function
Linear programming
Location analysis
LP-based heuristics
Management
Mathematical inequalities
Operational research and scientific management
Operational research. Management science
Operations research
Operations Research/Decision Theory
Site selection
Studies
Theoretical Paper
Theoretical Papers
Variable costs
title An LP-based heuristic for two-stage capacitated facility location problems
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