Sustainable multi-commodity capacitated facility location problem with complementarity demand functions

Weiwei Liu, Nan Kong, Mingzheng Wang and Lingling Zhang

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 145, issue C

Abstract: We investigate a multi-commodity capacitated facility location problem involving sustainability concerns (e.g., restrained carbon emission). In addition, this problem incorporates a complementarity demand function. We show that this incorporation can lead to superior decisions both analytically and computationally. The resultant formulation is a 0–1 mixed-integer non-concave quadratic program with equilibrium constraints. We adopt the piecewise-linear envelope method to transform the formulation into a 0–1 mixed-integer concave program. We then propose an efficient branch-and-refine algorithm with global convergence. Numerical examples demonstrate the effect of carbon emission limit and carbon trading on company decisions.

Keywords: Facility location; Multi-commodity; Carbon emission; Complementarity demand function; Mixed-integer quadratic program (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tre.2020.102165

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