Dominance criteria for the capacitated warehouse location problem

The paper examines the capacitated warehouse location problem where fixed costs, generally relating to the installation of warehouses and variable costs, consisting mainly of transportation costs, are minimized. The minimization of each kind of cost drives the solution towards opposite directions with respect to the number of warehouses to be opened/closed. Therefore, the dominance criteria between fixed and variable costs are examined. This leads to exact tests as well as greedy heuristics, the latter known in the literature as ADD/DROP techniques.