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A Multi-Exchange Heuristic for the Single-Source Capacitated Facility Location Problem

Author

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  • R. K. Ahuja

    (Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611)

  • J. B. Orlin

    (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • S. Pallottino

    (Dipartimento di Informatica, Università di Pisa, Pisa, Italy)

  • M. P. Scaparra

    (Dipartimento di Informatica, Università di Pisa, Pisa, Italy)

  • M. G. Scutellà

    (Dipartimento di Informatica, Università di Pisa, Pisa, Italy)

Abstract

We present a very large-scale neighborhood (VLSN) search algorithm for the capacitated facility location problem with single-source constraints. The neighborhood structures are induced by customer multi-exchanges and by facility moves. We consider both traditional single-customer multi-exchanges, detected on a suitably defined customer improvement graph, and more innovative multicustomer multi-exchanges, detected on a facility improvement graph dynamically built through the use of a greedy scheme. Computational results for some benchmark instances are reported that demonstrate the effectiveness of the approach for solving large-scale problems. A further test on real data involving an Italian factory is also presented.

Suggested Citation

  • R. K. Ahuja & J. B. Orlin & S. Pallottino & M. P. Scaparra & M. G. Scutellà, 2004. "A Multi-Exchange Heuristic for the Single-Source Capacitated Facility Location Problem," Management Science, INFORMS, vol. 50(6), pages 749-760, June.
    • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:6:p:749-760
    DOI: 10.1287/mnsc.1030.0193
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    References listed on IDEAS

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    1. Holmberg, Kaj & Ronnqvist, Mikael & Yuan, Di, 1999. "An exact algorithm for the capacitated facility location problems with single sourcing," European Journal of Operational Research, Elsevier, vol. 113(3), pages 544-559, March.
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    5. Ronnqvist, Mikael & Tragantalerngsak, Suda & Holt, John, 1999. "A repeated matching heuristic for the single-source capacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 116(1), pages 51-68, July.
    6. Beasley, J. E., 1993. "Lagrangean heuristics for location problems," European Journal of Operational Research, Elsevier, vol. 65(3), pages 383-399, March.
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    Cited by:

    1. Rajagopalan, Hari K. & Saydam, Cem, 2009. "A minimum expected response model: Formulation, heuristic solution, and application," Socio-Economic Planning Sciences, Elsevier, vol. 43(4), pages 253-262, December.
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    3. Siyang Xie & Xi Chen & Zhaodong Wang & Yanfeng Ouyang & Kamalesh Somani & Jing Huang, 2016. "Integrated Planning for Multiple Types of Locomotive Work Facilities Under Location, Routing, and Inventory Considerations," Interfaces, INFORMS, vol. 46(5), pages 391-408, October.
    4. Guastaroba, G. & Speranza, M.G., 2014. "A heuristic for BILP problems: The Single Source Capacitated Facility Location Problem," European Journal of Operational Research, Elsevier, vol. 238(2), pages 438-450.
    5. Lin, C.K.Y., 2009. "Stochastic single-source capacitated facility location model with service level requirements," International Journal of Production Economics, Elsevier, vol. 117(2), pages 439-451, February.
    6. Zeinal Hamadani, Ali & Abouei Ardakan, Mostafa & Rezvan, Taghi & Honarmandian, Mohammad Mehran, 2013. "Location-allocation problem for intra-transportation system in a big company by using meta-heuristic algorithm," Socio-Economic Planning Sciences, Elsevier, vol. 47(4), pages 309-317.
    7. Weninger, Dieter & Wolsey, Laurence A., 2023. "Benders-type branch-and-cut algorithms for capacitated facility location with single-sourcing," European Journal of Operational Research, Elsevier, vol. 310(1), pages 84-99.
    8. Bertazzi, Luca & Laganà, Demetrio & Ohlmann, Jeffrey W. & Paradiso, Rosario, 2020. "An exact approach for cyclic inbound inventory routing in a level production system," European Journal of Operational Research, Elsevier, vol. 283(3), pages 915-928.
    9. Li, Jinfeng & Chu, Feng & Prins, Christian & Zhu, Zhanguo, 2014. "Lower and upper bounds for a two-stage capacitated facility location problem with handling costs," European Journal of Operational Research, Elsevier, vol. 236(3), pages 957-967.
    10. Sune Lauth Gadegaard & Andreas Klose & Lars Relund Nielsen, 2018. "An improved cut-and-solve algorithm for the single-source capacitated facility location problem," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 6(1), pages 1-27, March.
    11. Addis, Bernardetta & Carello, Giuliana & Ceselli, Alberto, 2013. "Combining very large scale and ILP based neighborhoods for a two-level location problem," European Journal of Operational Research, Elsevier, vol. 231(3), pages 535-546.
    12. Dong, Zhijie & Turnquist, Mark A., 2015. "Combining service frequency and vehicle routing for managing supplier shipments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 231-243.
    13. Mohammad M. Fazel-Zarandi & J. Christopher Beck, 2012. "Using Logic-Based Benders Decomposition to Solve the Capacity- and Distance-Constrained Plant Location Problem," INFORMS Journal on Computing, INFORMS, vol. 24(3), pages 387-398, August.
    14. Cheang, Brenda & Gao, Xiang & Lim, Andrew & Qin, Hu & Zhu, Wenbin, 2012. "Multiple pickup and delivery traveling salesman problem with last-in-first-out loading and distance constraints," European Journal of Operational Research, Elsevier, vol. 223(1), pages 60-75.
    15. Guo, Yunsong & Li, Yanzhi & Lim, Andrew & Rodrigues, Brian, 2008. "Tariff concessions in production sourcing," European Journal of Operational Research, Elsevier, vol. 187(2), pages 543-555, June.
    16. Mohammad Nezhad, Ali & Manzour, Hasan & Salhi, Said, 2013. "Lagrangian relaxation heuristics for the uncapacitated single-source multi-product facility location problem," International Journal of Production Economics, Elsevier, vol. 145(2), pages 713-723.
    17. Raghavan, S. & Sahin, Mustafa & Salman, F. Sibel, 2019. "The capacitated mobile facility location problem," European Journal of Operational Research, Elsevier, vol. 277(2), pages 507-520.
    18. Ravindra K. Ahuja & Krishna C. Jha & Jian Liu, 2007. "Solving Real-Life Railroad Blocking Problems," Interfaces, INFORMS, vol. 37(5), pages 404-419, October.
    19. Yang, Zhen & Chu, Feng & Chen, Haoxun, 2012. "A cut-and-solve based algorithm for the single-source capacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 221(3), pages 521-532.
    20. van der Gaast, J.P. & Rietveld, C.A. & Gabor, A.F. & Zhang, Y., 2011. "A Local Search Algorithm for Clustering in Software as a Service Networks," ERIM Report Series Research in Management ERS-2011-004-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    21. Iván Contreras & Juan Díaz, 2008. "Scatter search for the single source capacitated facility location problem," Annals of Operations Research, Springer, vol. 157(1), pages 73-89, January.
    22. Andrew Lim & Xingwen Zhang, 2007. "A Two-Stage Heuristic with Ejection Pools and Generalized Ejection Chains for the Vehicle Routing Problem with Time Windows," INFORMS Journal on Computing, INFORMS, vol. 19(3), pages 443-457, August.

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