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Journal of Shanghai University >

2022 , Vol. 28 >Issue 6: 996 - 1007

DOI: https://doi.org/10.12066/j.issn.1007-2861.2281

Research Articles

A two-echelon capacitated facility location problem with depot size selection

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  • 1. School of Management, Shanghai University, Shanghai 200444, China
    2. School of Management, Xi'an Jiaotong University, Xi'an 710049, Shaanxi, China

Received date: 2020-06-12

  Online published: 2020-11-15

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Abstract

Facility location is a problematic point in modern enterprise production and operation management. Further, it is a decisive factor affecting enterprises' efficiency because of the shortage of facility capacity selection in the existing two-stage facility location study. This study introduced the optimisation decision technology of facility capacity selection simultaneously. The problem was predominately in opening plants and depots, selecting the size of depots, determining the product flows from the opened plants to the opened depots, and the customers' assignments to the opened depots to satisfy the customers' demands. A mixed-integer programming model to minimise the total cost was proposed. The Lagrangean relaxation (LR) approach and hybrid variable neighbourhood tabu search (HVNTS) algorithm were designed to solve this problem. A large number of instances were randomly generated and tested to evaluate the effectiveness of the proposed method. The results verified that this method could solve the problem of large-scale facility location with depot size selection.

Key words： facility location; depot size selection; Lagrangian relaxation (LR); hybrid variable neighbourhood tabu search (HVNTS)

Cite this article

WU Tingying, REN Yating, ZHOU Zhili . A two-echelon capacitated facility location problem with depot size selection[J]. Journal of Shanghai University, 2022 , 28(6) : 996 -1007 . DOI: 10.12066/j.issn.1007-2861.2281

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