Exact Approaches for Designing Multifacility Buy-at-Bulk Networks

Ashwin Arulselvan () and Mohsen Rezapour ()
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Ashwin Arulselvan: Department of Management Science, University of Strathclyde, Glasgow, Scotland G1 1XQ, United Kingdom
Mohsen Rezapour: Department of Computing Science, University of Alberta, Edmonton, Alberta T6G 2R3, CanadaAuthor-Name: Wolfgang A. Welz

INFORMS Journal on Computing, 2017, vol. 29, issue 4, 597-611

Abstract: We study a problem that integrates buy-at-bulk network design into the classical facility location problem. We consider a generalization of the facility location problem where multiple clients may share a capacitated network to connect to open facilities instead of requiring direct links. In this problem, we wish to open facilities, build a routing network by installing access cables of different costs and capacities, and route every client demand to an open facility. We provide a path-based formulation and we compare it with the natural compact formulation for this problem. We then design an exact branch-price-and-cut algorithm for solving the path-based formulation. We study the effect of two families of valid inequalities. In addition to this, we present three different types of primal heuristics and employ a hybrid approach to effectively combine these heuristics in order to improve the primal bounds. We finally report the results of our approach that were tested on a set of real world instances, as well as two sets of benchmark instances and evaluate the effects of our valid inequalities and primal heuristics.

Keywords: facility location; buy-at-bulk; branch-price-and-cut algorithm; optical access networks (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orijoc:v:29:y:2017:i:4:p:597-611

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