ADD/DROP PROCEDURES FOR THE CAPACITATED PLANT LOCATION PROBLEM

The capacitated plant location problem with linear transportation costs is considered. An algorithm based on ADD/DROP procedures is proposed. Exact rules are presented allowing an a priori opening or closing of facilities. Facilities left are submitted to an extension of the exact rules. Procedures are implemented with the help of lower and upper bounds using Lagrangean relaxation. Computational results are presented and comparisons with other algorithms are made.