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A bi-level capacitated P-median facility location problem with the most likely allocation solution

Maryam Abareshi and Mehdi Zaferanieh

Transportation Research Part B: Methodological, 2019, vol. 123, issue C, 1-20

Abstract: In this paper, a bi-level model is introduced to evaluate the capacitated p-median facility location problem with the most likely allocation solution. The classical capacitated p-median problem is considered in the upper-level to minimize the cost of locating facilities and serving demands while a log-based model resulting from the minimum information approach is used in the lower-level to determine the most likely allocation solution based on the available information. Using Lagrangian dual theory, the proposed bi-level problem is reduced to a new one-level nonlinear mixed-integer problem whose solution is obtained by comparing two mixed-integer linear problems. Some numerical examples are provided to illustrate the added value of the proposed model.

Keywords: Network; Facility location; Capacitated p-median problem; Bi-level programming; Information theory (search for similar items in EconPapers)
Date: 2019
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