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Sustainable multi-commodity capacitated facility location problem with complementarity demand functions

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  • Liu, Weiwei
  • Kong, Nan
  • Wang, Mingzheng
  • Zhang, Lingling

Abstract

We investigate a multi-commodity capacitated facility location problem involving sustainability concerns (e.g., restrained carbon emission). In addition, this problem incorporates a complementarity demand function. We show that this incorporation can lead to superior decisions both analytically and computationally. The resultant formulation is a 0–1 mixed-integer non-concave quadratic program with equilibrium constraints. We adopt the piecewise-linear envelope method to transform the formulation into a 0–1 mixed-integer concave program. We then propose an efficient branch-and-refine algorithm with global convergence. Numerical examples demonstrate the effect of carbon emission limit and carbon trading on company decisions.

Suggested Citation

  • Liu, Weiwei & Kong, Nan & Wang, Mingzheng & Zhang, Lingling, 2021. "Sustainable multi-commodity capacitated facility location problem with complementarity demand functions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:transe:v:145:y:2021:i:c:s1366554520308085
    DOI: 10.1016/j.tre.2020.102165
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