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Multi-level uncapacitated facility location problem with clients' preferences

Author

Listed:
  • Stefan MiÅ¡ković
  • Olivera StanÄ ić
  • Zorica Stanimirović
  • Raca Todosijević

Abstract

This paper introduces the multi-level uncapacitated facility location problem with clients' preferences (MLUFLP-CP), which represents a generalisation of the well-known multi-level uncapacitated facility location problem (MLUFLP). The MLUFLP-CP is first modelled as a bi-level mathematical program, and then reformulated into four equivalent integer linear programs. Due to the NP-hardness of the MLUFLP-CP, the problem instances of real-world dimensions are unsolved to optimality by CPLEX solver. Therefore, we have designed a general variable neighbourhood search (GVNS) metaheuristic as an efficient solution approach to the MLUFLP-CP. The GVNS concept and its parameters are adapted to the multi-level nature of problem, and a novel VND variant, denoted as multi-level VND, is used as a local search improvement procedure. Computational experiments on MLUFLP-CP instances show that the proposed GVNS quickly reaches all known optimal solutions, improves upper bounds obtained by CPLEX and efficiently provides solutions for large-scale instances that were out of reach for CPLEX. [Submitted: 29 March 2024; Accepted: 4 December 2024]

Suggested Citation

  • Stefan MiÅ¡ković & Olivera StanÄ ić & Zorica Stanimirović & Raca Todosijević, 2025. "Multi-level uncapacitated facility location problem with clients' preferences," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 20(4), pages 569-589.
    • Handle: RePEc:ids:eujine:v:20:y:2025:i:4:p:569-589
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