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A cross entropy-based metaheuristic algorithm for large-scale capacitated facility location problems

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  • M Caserta

    (Universität Hamburg)

  • E Quiñonez Rico

    (University of Texas at El Paso)

Abstract

In this paper, we present a metaheuristic-based algorithm for the capacitated facility location problem. The proposed scheme is made up by three phases: (i) solution construction phase, in which a cross entropy-based scheme is used to ‘intelligently’ guess which facilities should be opened; (ii) local search phase, aimed at exploring the neighbourhood of ‘elite’ solutions of the previous phase; and (iii) learning phase, aimed at fine-tuning the stochastic parameters of the algorithm. The algorithm has been thoroughly tested on large-scale random generated instances as well as on benchmark problems and computational results show the effectiveness and robustness of the algorithm.

Suggested Citation

  • M Caserta & E Quiñonez Rico, 2009. "A cross entropy-based metaheuristic algorithm for large-scale capacitated facility location problems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(10), pages 1439-1448, October.
    • Handle: RePEc:pal:jorsoc:v:60:y:2009:i:10:d:10.1057_jors.2008.77
    DOI: 10.1057/jors.2008.77
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    References listed on IDEAS

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    1. J A Díaz & E Fernández, 2002. "A Branch-and-Price algorithm for the Single Source Capacitated Plant Location Problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(7), pages 728-740, July.
    2. Sridharan, R., 1995. "The capacitated plant location problem," European Journal of Operational Research, Elsevier, vol. 87(2), pages 203-213, December.
    3. Barcelo, J. & Casanovas, J., 1984. "A heuristic lagrangean algorithm for the capacitated plant location problem," European Journal of Operational Research, Elsevier, vol. 15(2), pages 212-226, February.
    4. Pieter-Tjerk de Boer & Dirk Kroese & Shie Mannor & Reuven Rubinstein, 2005. "A Tutorial on the Cross-Entropy Method," Annals of Operations Research, Springer, vol. 134(1), pages 19-67, February.
    5. 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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