The incorporation of fixed cost and multilevel capacities into the discrete and continuous single source capacitated facility location problem

Chandra Ade Irawan (), Martino Luis (), Said Salhi () and Arif Imran ()
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Chandra Ade Irawan: Nottingham University Business School China, University of Nottingham Ningbo China
Martino Luis: University of Exeter
Said Salhi: University of Kent
Arif Imran: Institut Teknologi Nasional

Annals of Operations Research, 2019, vol. 275, issue 2, No 6, 367-392

Abstract: Abstract In this study we investigate the single source location problem with the presence of several possible capacities and the opening (fixed) cost of a facility that is depended on the capacity used and the area where the facility is located. Mathematical models of the problem for both the discrete and the continuous cases using the Rectilinear and Euclidean distances are produced. Our aim is to find the optimal number of open facilities, their corresponding locations, and their respective capacities alongside the assignment of the customers to the open facilities in order to minimise the total fixed and transportation costs. For relatively large problems, two solution methods are proposed namely an iterative matheuristic approach and VNS-based matheuristic technique. Dataset from the literature is adapted to assess our proposed methods. To assess the performance of the proposed solution methods, the exact method is first applied to small size instances where optimal solutions can be identified or lower and upper bounds can be recorded. Results obtained by the proposed solution methods are also reported for the larger instances.

Keywords: Discrete and continuous capacitated location; Opening fixed cost; Mathematical formulation; Matheuristic; VNS (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10479-018-3014-9

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