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An Improved IP Formulation for the Uncapacitated Facility Location Problem: Capitalizing on Objective Function Structure

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  • Oded Berman
  • Dmitry Krass

Abstract

In this paper we examine the Uncapacitated Facility Location Problem (UFLP) with a special structure of the objective function coefficients. For each customer the set of potential locations can be partitioned into subsets such that the objective function coefficients in each are identical. This structure exists in many applications, including the Maximum Cover Location Problem. For the problems possessing this structure, we develop a new integer programming formulation that has all the desirable properties of the standard formulation, but with substantially smaller dimensionality, leading to significant improvement in computational times. While our formulation applies to any instance of the UFLP, the reduction in dimensionality depends on the degree to which this special structure is present. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Oded Berman & Dmitry Krass, 2005. "An Improved IP Formulation for the Uncapacitated Facility Location Problem: Capitalizing on Objective Function Structure," Annals of Operations Research, Springer, vol. 136(1), pages 21-34, April.
    • Handle: RePEc:spr:annopr:v:136:y:2005:i:1:p:21-34:10.1007/s10479-005-2036-2
    DOI: 10.1007/s10479-005-2036-2
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    References listed on IDEAS

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    1. Berman, Oded & Krass, Dmitry & Drezner, Zvi, 2003. "The gradual covering decay location problem on a network," European Journal of Operational Research, Elsevier, vol. 151(3), pages 474-480, December.
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    4. Krarup, Jakob & Pruzan, Peter Mark, 1983. "The simple plant location problem: Survey and synthesis," European Journal of Operational Research, Elsevier, vol. 12(1), pages 36-57, January.
    5. Paul H. Zipkin, 1980. "Bounds for Row-Aggregation in Linear Programming," Operations Research, INFORMS, vol. 28(4), pages 903-916, August.
    6. CORNUEJOLS, Gérard & FISHER, Marshall L. & NEMHAUSER, George L., 1977. "Location of bank accounts to optimize float: An analytic study of exact and approximate algorithms," LIDAM Reprints CORE 292, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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