Article ID: | iaor2009861 |
Country: | United Kingdom |
Volume: | 59 |
Issue: | 3 |
Start Page Number: | 399 |
End Page Number: | 406 |
Publication Date: | Mar 2008 |
Journal: | Journal of the Operational Research Society |
Authors: | Laporte G., Hansen P., Brimberg J., Mladenovi N., Uroevi D. |
Keywords: | heuristics, programming: fractional |
This paper examines the plant location problem under the objective of maximizing return-on-investment. However, in place of the standard assumption that all demands must be satisfied, we impose a minimum acceptable level on market share. The model presented takes the form of a linear fractional mixed integer program. Based on properties of the model, a local search procedure is developed to solve the problem heuristically. Variable neighbourhood search and tabu search heuristics are also developed and tested. Thus, a useful extension of the simple plant location problem is examined, and heuristics are developed for the first time to solve realistic instances of this problem.