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A Local Search Heuristic for the Two-Stage Capacitated Facility Location Problem

  • Arno Bruns
Conference paper
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 460)

Abstract

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.

Keywords

Local Search Problem Instance Transportation Cost Open Depot Local Search Heuristic 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Arno Bruns
    • 1
  1. 1.Universität St. GallenSt. GallenSwitzerland

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