The fixed charge facility location problem with coverage restrictions

This paper develops a fixed charge facility location model with coverage restrictions, minimizing cost while maintaining an appropriate level of service, in identifying facility locations. Further, it discusses the insights that can be gained using the model. Two Lagrangian relaxation based heuristics are presented and tested. Both heuristics use a greedy adding algorithm to calculate upper bounds and subgradient optimization to calculate lower bounds. While both procedures are capable of generating good solutions, one is computationally superior.