A multi-exchange heuristic for the single-source capacitated facility location problem

A multi-exchange heuristic for the single-source capacitated facility location problem

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Article ID: iaor20073542
Country: United States
Volume: 50
Issue: 6
Start Page Number: 749
End Page Number: 760
Publication Date: Jun 2004
Journal: Management Science
Authors: , , , ,
Keywords: heuristics: local search, facilities
Abstract:

We present a very large-scale neighborhood (VLSN) search algorithm for the capacitated facility location problem with single-source constraints. The neighborhood structures are induced by customer multi-exchanges and by facility moves. We consider both traditional single-customer multi-exchanges, detected on a suitably defined customer improvement graph, and more innovative multicustomer multi-exchanges, detected on a facility improvement graph dynamically built through the use of a greedy scheme. Computational results for some benchmark instances are reported that demonstrate the effectiveness of the approach for solving large-scale problems. A further test on real data involving an Italian factory is also presented.

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