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An Exact Algorithm for Multilevel Uncapacitated Facility Location

Author

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  • Camilo Ortiz-Astorquiza

    (Department of Mechanical, Industrial and Aerospace Engineering, Concordia University, Montreal, Quebec H3G 1M8, Canada)

  • Ivan Contreras

    (Department of Mechanical, Industrial and Aerospace Engineering, Concordia University, Montreal, Quebec H3G 1M8, Canada)

  • Gilbert Laporte

    (Department of Decision Sciences, HEC Montréal, Montreal, Quebec H3T 2A7, Canada; Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Montreal, Quebec H3T 1J4, Canada)

Abstract

We study a general class of multilevel uncapacitated p -location problems in which the selection of links between levels of facilities is part of the decision process. We propose an exact algorithm based on a Benders reformulation to solve large-scale instances of the general problem and some well-known particular cases. We exploit the network flow structure of the reformulation to efficiently generate Pareto-optimal cuts. We perform extensive computational experiments to assess the performance of several different variants of the Benders algorithm. Results obtained on benchmark instances with up to 3,000 customers, 250 potential facilities, and four levels confirm its efficiency.

Suggested Citation

  • Camilo Ortiz-Astorquiza & Ivan Contreras & Gilbert Laporte, 2019. "An Exact Algorithm for Multilevel Uncapacitated Facility Location," Transportation Science, INFORMS, vol. 53(4), pages 1085-1106, July.
    • Handle: RePEc:inm:ortrsc:v:53:y:2019:i:4:p:1085-1106
    DOI: 10.1287/trsc.2018.0868
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