The fixed charge facility location problem with coverage restrictions |
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| Institution: | 1. Department of Finance, Asia University, Wufeng, Taichung 41354, Taiwan;2. Department of Industrial Engineering and Management, National Chiao Tung University, East District, Hsinchu 30010, Taiwan;3. Department of M-Commerce and Multimedia Applications, Asia University, Wufeng, Taichung 41354, Taiwan;4. Department of Information Management, National Formosa University, Huwei, Yunlin 63201, Taiwan;5. Sino-US College, Beijing Institute of Technology, Zhuhai, Zhuhai 519085, China;1. Concordia University and Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Montreal H3G 1M8, Canada;2. HEC Montréal and Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Montreal H3T 2A7, Canada |
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| Abstract: | This paper develops a fixed charge facility location model with coverage restrictions, minimizing cost while maintaining an appropriate level of service, in identifying facility locations. Further, it discusses the insights that can be gained using the model. Two Lagrangian relaxation based heuristics are presented and tested. Both heuristics use a greedy adding algorithm to calculate upper bounds and subgradient optimization to calculate lower bounds. While both procedures are capable of generating good solutions, one is computationally superior. |
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