Discrete facility location with nonlinear facility costs

The paper treats a discrete uncapacitated facility location problem where the installation cost per facility is a general nonlinear function of the number of established facilities. Assuming a convexity property, Mirchandani and Jagannathan developed a heuristic solution procedure for this problem. Here, it is shown how to modify their algorithm in order to get and prove exact solutions and, at the same time, to improve the computational efficiency.