Bi-objective bilevel optimization of distribution center locations considering user equilibria

Walter J. Gutjahr and Nada Dzubur

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 85, issue C, 1-22

Abstract: We propose a bi-objective, bilevel optimization model for the location of relief distribution centers (DCs) in humanitarian logistics. The upper-level decision-maker (an aid-providing organization) selects locations for capacitated DCs. On the lower level, beneficiaries choose a DC according to distance and amount of supply to be expected. This effects a user equilibrium on the lower decision level. Upper level objectives are to minimize total opening cost for the DCs and total uncovered demand. We develop an exact algorithm for determining the Pareto frontier of the problem, integrating the adaptive epsilon-constraint method, a branch-and-bound procedure, and the Frank–Wolfe procedure.

Keywords: Bilevel programming; Facility location; Humanitarian logistics; Multi-objective optimization; User equilibrium (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (25)

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DOI: 10.1016/j.tre.2015.11.001

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