A biased-randomised algorithm for the capacitated facility location problem with soft constraints

Alejandro Estrada-Moreno, Albert Ferrer, Angel Juan, Adil Bagirov and Javier Panadero

Journal of the Operational Research Society, 2020, vol. 71, issue 11, 1799-1815

Abstract: This paper analyzes the single-source capacitated facility location problem (SSCFLP) with soft capacity constraints. Hence, the maximum capacity at each facility can be potentially exceed by incurring in a penalty cost, which increases with the constraint-violation gap. In some realistic scenarios, this penalty cost can be modelled as a piecewise function. As a result, the traditional cost-minimization objective becomes a non-smooth function that is difficult to optimise using exact methods. A mathematical model of this non-smooth SSCFLP is provided, and a biased-randomized iterated local search metaheuristic is proposed as a solving method. A set of computational experiments is run to illustrate our algorithm and test its efficiency.

Date: 2020
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DOI: 10.1080/01605682.2019.1639478

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