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Improved Approximation of the General Soft-Capacitated Facility Location Problem

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An NP-hard variant of the single-source Capacitated Facility Location Problem is studied, where each facility is composed of a variable number of fixed-capacity production units. This problem, especially the metric case, has been recently studied in several papers. In this paper, we only consider the general problem where connection costs do not systematically satisfy the triangle inequality property. We show that an adaptation of the set covering greedy heuristic, where the sub-problem is approximately solved by a Fully Polynomial-Time Approximation Scheme based on cost scaling and dynamic programming, achieves a logarithmic approximation ratio of (1+ƒÕ)H(n) for the problem, where n is the number of clients to be served, and H is the harmonic series. This improves the previous bound of 2H(n) for this problem.

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  • Alfandari, Laurent, 2005. "Improved Approximation of the General Soft-Capacitated Facility Location Problem," ESSEC Working Papers DR 05003, ESSEC Research Center, ESSEC Business School.
    • Handle: RePEc:ebg:essewp:dr-05003
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    1. Eugene L. Lawler, 1979. "Fast Approximation Algorithms for Knapsack Problems," Mathematics of Operations Research, INFORMS, vol. 4(4), pages 339-356, November.
    2. V. Chvatal, 1979. "A Greedy Heuristic for the Set-Covering Problem," Mathematics of Operations Research, INFORMS, vol. 4(3), pages 233-235, August.
    3. Refael Hassin, 1992. "Approximation Schemes for the Restricted Shortest Path Problem," Mathematics of Operations Research, INFORMS, vol. 17(1), pages 36-42, February.
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    1. Turken, Nazli & Carrillo, Janice & Verter, Vedat, 2017. "Facility location and capacity acquisition under carbon tax and emissions limits: To centralize or to decentralize?," International Journal of Production Economics, Elsevier, vol. 187(C), pages 126-141.

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    JEL classification:

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

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