IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/324.html
   My bibliography  Save this paper

Restructuring Facility Networks under Economy of Scales

Author

Listed:
  • Marta Sofia R. Monteiro

    (Faculdade de Economia, Universidade do Porto, LIAAD-INESC L.A.,UP)

  • Dalila B. M. M. Fontes

    (Faculdade de Economia, Universidade do Porto, LIAAD-INESC L.A.,UP)

  • Fernando A. C. C. Fontes

    (Faculdade de Engenharia, Universidade do Porto, ISR-Porto, UP)

Abstract

In this work we address the facility network restructuring problem. This problem is closely related to location/allocation and set covering problems. However, none of the above includes all its complexity nor involves all the decision types. Due to the presence of economies of scale, another type of complexity arises since we must minimize a concave cost function. Therefore we are extending current literature by considering a new problem. For this problem a local search heuristic is proposed, where an initially feasible solution, obtained by solving a related linear problem, is improved by a slope scaling procedure and then by drop and swap operations. Computational results showing the effectiveness and efficiency of the solution procedure are reported.

Suggested Citation

  • Marta Sofia R. Monteiro & Dalila B. M. M. Fontes & Fernando A. C. C. Fontes, 2009. "Restructuring Facility Networks under Economy of Scales," FEP Working Papers 324, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:324
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/09.06.02_wp324.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Klose, Andreas & Gortz, Simon, 2007. "A branch-and-price algorithm for the capacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1109-1125, June.
    2. Robert F. Dell, 1998. "Optimizing Army Base Realignment and Closure," Interfaces, INFORMS, vol. 28(6), pages 1-18, December.
    3. Christofides, N. & Beasley, J. E., 1983. "Extensions to a Lagrangean relaxation approach for the capacitated warehouse location problem," European Journal of Operational Research, Elsevier, vol. 12(1), pages 19-28, January.
    4. ReVelle, C. S. & Eiselt, H. A., 2005. "Location analysis: A synthesis and survey," European Journal of Operational Research, Elsevier, vol. 165(1), pages 1-19, August.
    5. Hall, Nicholas G. & Hochbaum, Dorit S., 1992. "The multicovering problem," European Journal of Operational Research, Elsevier, vol. 62(3), pages 323-339, November.
    6. Ghosh, Diptesh, 2003. "Neighborhood search heuristics for the uncapacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 150(1), pages 150-162, October.
    7. Holmberg, Kaj, 1999. "Exact solution methods for uncapacitated location problems with convex transportation costs," European Journal of Operational Research, Elsevier, vol. 114(1), pages 127-140, April.
    8. Averbakh, Igor & Berman, Oded & Drezner, Zvi & Wesolowsky, George O., 2007. "The uncapacitated facility location problem with demand-dependent setup and service costs and customer-choice allocation," European Journal of Operational Research, Elsevier, vol. 179(3), pages 956-967, June.
    9. Sierksma, G. & Ghosh, D., 2000. "Complete local search with memory," Research Report 00A47, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    10. Gonsalvez, David J. & Hall, Nicholas G. & Rhee, WanSoo T. & Siferd, Sue P., 1987. "Heuristic solutions and confidence intervals for the multicovering problem," European Journal of Operational Research, Elsevier, vol. 31(1), pages 94-101, July.
    11. Rajan Batta & Narasimha R. Mannur, 1990. "Covering-Location Models for Emergency Situations That Require Multiple Response Units," Management Science, INFORMS, vol. 36(1), pages 16-23, January.
    12. Averbakh, Igor & Berman, Oded & Drezner, Zvi & Wesolowsky, George O., 1998. "The plant location problem with demand-dependent setup costs and centralized allocation," European Journal of Operational Research, Elsevier, vol. 111(3), pages 543-554, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mariano Gallo, 2019. "An Optimisation Model to Consider the NIMBY Syndrome within the Landfill Siting Problem," Sustainability, MDPI, vol. 11(14), pages 1-18, July.
    2. Mina Husseinzadeh Kashan & Ali Husseinzadeh Kashan & Nasim Nahavandi, 2013. "A novel differential evolution algorithm for binary optimization," Computational Optimization and Applications, Springer, vol. 55(2), pages 481-513, June.
    3. Fathali Firoozi, 2008. "Boundary Distributions in Testing Inequality Hypotheses," Working Papers 0046, College of Business, University of Texas at San Antonio.
    4. Christensen, Tue Rauff Lind & Klose, Andreas, 2021. "A fast exact method for the capacitated facility location problem with differentiable convex production costs," European Journal of Operational Research, Elsevier, vol. 292(3), pages 855-868.
    5. B Goldengorin & J Keane & V Kuzmenko & M K-S Tso, 2011. "Optimal supplier choice with discounting," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 690-699, April.
    6. Robert F. Dell & P. Lee Ewing & William J. Tarantino, 2008. "Optimally Stationing Army Forces," Interfaces, INFORMS, vol. 38(6), pages 421-435, December.
    7. Schweiger, Katharina & Sahamie, Ramin, 2013. "A hybrid Tabu Search approach for the design of a paper recycling network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 98-119.
    8. Firas Rifai, 2018. "Transfer of Knowhow and Experiences from Commercial Logistics into Humanitarian Logistics to Improve Rescue Missions in Disaster Areas," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 8(3), pages 1-63, August.
    9. Chan Y. Han & Brian J. Lunday & Matthew J. Robbins, 2016. "A Game Theoretic Model for the Optimal Location of Integrated Air Defense System Missile Batteries," INFORMS Journal on Computing, INFORMS, vol. 28(3), pages 405-416, August.
    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. Melkote, Sanjay & Daskin, Mark S., 2001. "Capacitated facility location/network design problems," European Journal of Operational Research, Elsevier, vol. 129(3), pages 481-495, March.
    12. Gaston Tchang, 2016. "The impact of highway proximity on distribution centres’ rents," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2834-2848, October.
    13. P. Daniel Wright & Matthew J. Liberatore & Robert L. Nydick, 2006. "A Survey of Operations Research Models and Applications in Homeland Security," Interfaces, INFORMS, vol. 36(6), pages 514-529, December.
    14. Harkness, Joseph & ReVelle, Charles, 2003. "Facility location with increasing production costs," European Journal of Operational Research, Elsevier, vol. 145(1), pages 1-13, February.
    15. Lili Mei & Deshi Ye & Yong Zhang, 2018. "Approximation strategy-proof mechanisms for obnoxious facility location on a line," Journal of Combinatorial Optimization, Springer, vol. 36(2), pages 549-571, August.
    16. Emde, Simon & Boysen, Nils, 2012. "Optimally locating in-house logistics areas to facilitate JIT-supply of mixed-model assembly lines," International Journal of Production Economics, Elsevier, vol. 135(1), pages 393-402.
    17. Loumeau, Gabriel, 2023. "Locating Public Facilities: Theory and Micro Evidence from Paris," Journal of Urban Economics, Elsevier, vol. 135(C).
    18. Teixeira, Joao C. & Antunes, Antonio P., 2008. "A hierarchical location model for public facility planning," European Journal of Operational Research, Elsevier, vol. 185(1), pages 92-104, February.
    19. Yimeng Shi & Hongyuan Zhang & Zheng Chen & Yueyue Sun & Xuecheng Liu & Jin Gu, 2023. "A Study on the Deployment of Mesoscale Chemical Hazard Area Monitoring Points by Combining Weighting and Fireworks Algorithms," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    20. Klose, Andreas & Gortz, Simon, 2007. "A branch-and-price algorithm for the capacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1109-1125, June.

    More about this item

    Keywords

    Location; Allocation; Covering; Concave Optimization; Heuristics;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.