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A dual‐based optimization procedure for the two‐echelon uncapacitated facility location problem

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  • Li‐Lian Gao
  • E. Powell Robinson

Abstract

The two‐echelon uncapacitated facility location problem (TUFLP) is a generalization of the uncapacitated facility location problem (UFLP) and multiactivity facility location problem (MAFLP). In TUFLP there are two echelons of facilities through which products may flow in route to final customers. The objective is to determine the least‐cost number and locations of facilities at each echelon in the system, the flow of product between facilities, and the assignment of customers to supplying facilities. We propose a new dual‐based solution procedure for TUFLP that can be used as a heuristic or incorporated into branch‐and‐bound procedures to obtain optimal solutions to TUFLP. The algorithm is an extension of the dual ascent and adjustment procedures developed by Erlenkotter for UFLP. We report computational experience gained by solving over 420 test problems. The largest problems solved have 25 possible facility locations at each echelon and 35 customer zones, implying 650 integer variables and 21,875 continuous variables.

Suggested Citation

  • Li‐Lian Gao & E. Powell Robinson, 1992. "A dual‐based optimization procedure for the two‐echelon uncapacitated facility location problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(2), pages 191-212, March.
    • Handle: RePEc:wly:navres:v:39:y:1992:i:2:p:191-212
    DOI: 10.1002/1520-6750(199203)39:23.0.CO;2-T
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    Cited by:

    1. Chandra Ade Irawan & Dylan Jones, 2019. "Formulation and solution of a two-stage capacitated facility location problem with multilevel capacities," Annals of Operations Research, Springer, vol. 272(1), pages 41-67, January.

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