Multilevel Facility Location Optimization: A Novel Integer Programming Formulation and Approaches to Heuristic Solutions
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arXiv
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| Format: | Preprint |
| Published: |
2024
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| _version_ | 1866908327345127424 |
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| author | Alidaee, Bahram Wang, Haibo |
| author_facet | Alidaee, Bahram Wang, Haibo |
| contents | We attack the 4-level facility location problem (4L-FLP), a critical component in supply chains. Foundational tasks here involve selecting markets, plants, warehouses, and distribution centers to maximize profits while considering related constraints. Based on a variation of the quadratic assignment problem, we propose a novel integer programming formula that significantly reduces the variables. Our model incorporates several realistic features, including transportation costs and upper bounds on facilities at each level. It accounts for one-time fixed costs associated with selecting each facility. To solve this complex problem, we develop and experimentally test two solution procedures: a multi-start greedy heuristic and a multi-start tabu search. We conduct extensive sensitivity analyses on the results to assess the reliability of proposed algorithms. This study contributes to improved solution methods for large-scale 4L-FLPs, providing a valuable tool for supply chain maturity. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2406_07382 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Multilevel Facility Location Optimization: A Novel Integer Programming Formulation and Approaches to Heuristic Solutions Alidaee, Bahram Wang, Haibo Optimization and Control Discrete Mathematics We attack the 4-level facility location problem (4L-FLP), a critical component in supply chains. Foundational tasks here involve selecting markets, plants, warehouses, and distribution centers to maximize profits while considering related constraints. Based on a variation of the quadratic assignment problem, we propose a novel integer programming formula that significantly reduces the variables. Our model incorporates several realistic features, including transportation costs and upper bounds on facilities at each level. It accounts for one-time fixed costs associated with selecting each facility. To solve this complex problem, we develop and experimentally test two solution procedures: a multi-start greedy heuristic and a multi-start tabu search. We conduct extensive sensitivity analyses on the results to assess the reliability of proposed algorithms. This study contributes to improved solution methods for large-scale 4L-FLPs, providing a valuable tool for supply chain maturity. |
| title | Multilevel Facility Location Optimization: A Novel Integer Programming Formulation and Approaches to Heuristic Solutions |
| topic | Optimization and Control Discrete Mathematics |
| url | https://arxiv.org/abs/2406.07382 |