Location Allocation Problem

Part of the Contributions to Management Science book series (MANAGEMENT SC.)


Location-allocation (LA) problem is to locate a set of new facilities such that the transportation cost from facilities to customers is minimized and an optimal number of facilities have to be placed in an area of interest in order to satisfy the customer demand.

This problem occursin many practical settings where facilities provide homogeneous services such as the determination and location of warehouses, distribution centers, communication centers and production facilities.

Since LA problem was proposed by Cooper (1963) and spread to a weighted network by Hakimi (1964), network LA problem and many models were presented by Badri (1999).

For solving these models, numerous algorithms have been designed, involving branch-and-bound algorithms (Kuenne and Soland 1972), simulated annealing (Murray and Church 1996) and Tabu search (Brimberg and Mladenovic 1996; Ohlemüller 1997) and P-Median plus Weber (Hansen et al. 1998). Some hybrid algorithms have been also suggested, such as the one based on simulated annealing and random descent method (Ernst and Krishnamoorthy 1999) and the one utilizing the Lagrange relaxation method and genetic algorithm (Gong et al. 1997). Brimberg et al. (2000) improved present algorithms and proposed variable neighborhood search, which is proved to obtain the best results when the number of facilities to locate is large.


Variable Neighborhood Search Perturbation Scheme Organ Procurement Organization Transplant System Lagrange Relaxation Method 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  1. 1.Department of Industrial EngineeringAmirkabir University of TechnologyTehranIran

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