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Lagrangian relaxation heuristics for the uncapacitated single-source multi-product facility location problem

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  • Mohammad Nezhad, Ali
  • Manzour, Hasan
  • Salhi, Said

Abstract

Facility location problem is one of the strategic logistical drivers within the supply chain which is a hard to solve optimization problem. In this study, we focus on the uncapacitated single-source multi-product production/distribution facility location problem with the presence of set-up cost. To efficiently tackle this decision problem, two Lagrangian-based heuristics are proposed one of which incorporates integer cuts to strengthen the formulation. Local search operators are also embedded within these methods to improve the upper bounds as the search progresses. Three sets of instances with various characteristics are generated and used to evaluate the performance of the proposed algorithms. Encouraging results are obtained when assessed against an ILP formulation using CPLEX. The latter is used for generating optimal solutions for small size instances and also as a means for producing upper and lower bounds for larger ones when restricted by a limited amount of execution time.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:145:y:2013:i:2:p:713-723
    DOI: 10.1016/j.ijpe.2013.06.001
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    3. Liu, Zhimin & Wu, Zhong & Ji, Ying & Qu, Shaojian & Raza, Hassan, 2021. "Two-stage distributionally robust mixed-integer optimization model for three-level location–allocation problems under uncertain environment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 572(C).
    4. Huizhen Zhang & Cesar Beltran-Royo & Bo Wang & Ziying Zhang, 2019. "Two-phase semi-Lagrangian relaxation for solving the uncapacitated distribution centers location problem for B2C E-commerce," Computational Optimization and Applications, Springer, vol. 72(3), pages 827-848, April.
    5. Darvish, Maryam & Coelho, Leandro C., 2018. "Sequential versus integrated optimization: Production, location, inventory control, and distribution," European Journal of Operational Research, Elsevier, vol. 268(1), pages 203-214.
    6. Asefeh Hasani Goodarzi & Seyed Hessameddin Zegordi & Gülgün Alpan & Isa Nakhai Kamalabadi & Ali Husseinzadeh Kashan, 2021. "Reliable cross-docking location problem under the risk of disruptions," Operational Research, Springer, vol. 21(3), pages 1569-1612, September.

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