A lagrangean relaxation approach for a two-stage capacitated facility location problem with choice of depot size

Abstract : In this paper, we study a two-stage capacitated facility location problem with choice of depot size (TSCFLP-CD). Given a set of potential sites for plants in the first echelon, a set of potential sites for capacitated depots associated each with several possible sizes in the second echelon and a set of customers with given demands, the TSCFLP-CD aims to determine the locations of plants and depots, the size of depots, the product flows from plants to depots, and then to the customers under the single-sourcing constraints, so that all customers' demands are satisfied with the minimum sum of the fixed opening costs of facilities, the product handling costs and the logistics costs. A Lagrangean relaxation approach is proposed to achieve a lower bound and an upper bound of the TSCFLP-CD. Numerical experiments on randomly generated instances demonstrated the effectiveness and efficiency of the proposed Lagrangean relaxation approach with the average gap of upper bound over lower bound around 1% in a reasonable time.
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https://hal.archives-ouvertes.fr/hal-01202328
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Submitted on : Saturday, September 19, 2015 - 9:11:34 PM
Last modification on : Monday, October 28, 2019 - 10:50:21 AM

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Tingying Wu, Zhen Yang, Feng Chu, Zhili Zhou. A lagrangean relaxation approach for a two-stage capacitated facility location problem with choice of depot size. 12th IEEE International Conference on Networking, Sensing and Control (ICNSC 2015), Apr 2015, Taipei, Taiwan. pp.39--44, ⟨10.1109/ICNSC.2015.7116007⟩. ⟨hal-01202328⟩

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