A Local Search Heuristic for the Two-Stage Capacitated Facility Location Problem
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The Two Stage Capacitated Facility Location Problem is the problem of finding the locations of depots from a set of potential depot sites to satisfy given customer demands, the assignment of customers to the selected depots and the product flow from the plants to the depots such that the total system cost is minimized. The total demand of all customers assigned to any depot can not exceed the capacity of that depot and the shipments from any plant to a depot must not exceed a given supply capacity of that plant.
A new local search heuristic based on well-known drop and interchange techniques is presented. A first feasible solution is constructed using a modified version of the “drop”-approach. This solution is improved by a descent type local search on the set of open depots. The procedure has been tested on a set of randomly generated problems. Compared to lower bounds computed by a general mixed-integer programming solver, the results obtained were less than [%2.4] from these lower bounds.
KeywordsLocal Search Problem Instance Transportation Cost Open Depot Local Search Heuristic
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