Efficient approximate solution methods for the multi-commodity capacitated multi-facility Weber problem

  • Authors:
  • M. Hakan Akyüz;Temel Öncan;İ. Kuban Altınel

  • Affiliations:
  • Department of Industrial Engineering, Galatasaray University Ortaköy, İstanbul 34357, Türkiye;Department of Industrial Engineering, Galatasaray University Ortaköy, İstanbul 34357, Türkiye;Department of Industrial Engineering, Boğaziçi University Bebek, İstanbul 34342, Türkiye

  • Venue:
  • Computers and Operations Research
  • Year:
  • 2012

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Abstract

The capacitated multi-facility Weber problem is concerned with locating I capacitated facilities in the plane to satisfy the demand of J customers with the minimum total transportation cost of a single commodity. This is a nonconvex optimization problem and difficult to solve. In this work, we focus on a multi-commodity extension and consider the situation where K distinct commodities are shipped subject to capacity constraints between each customer and facility pair. Customer locations, demands and capacities for each commodity, and bundle restrictions are known a priori. The transportation costs, which are proportional to the distance between customers and facilities, depend on the commodity type. We address several location-allocation and discrete approximation heuristics using different strategies. Based on the obtained computational results we can say that the alternate solution of location and allocation problems is a very efficient strategy; but the discrete approximation has excellent accuracy.