A model for the capacitated p-facility location problem in global environments

This paper extends the capacitated facility location problem to include (i) a limit on the total number of open facilities, (ii) limits on the number of open facilities in particular regions, and (iii) the availability of a number of capacity options at each location. A highly efficient heuristic solution methodology based on Lagrangian relaxation is provided, and problems involving up to 400 locations/destinations are solved on an IBM 3090-600E computer. In addition, the paper investigates various logistical issues that are of relevance to managers in the current era of globally dispersed facility location.