Facility location and distribution planning with multiple transport alternatives

In this paper, we present a modeling and optimization of facility location and distribution planning problems with multiple transport alternatives. The problem is to determine an optimal facility location with respect to management strategy by using huge physical distribution data. We consider two types of problems. The first one is the facility location problem with transportation from depot to customer and a direct transportation from factory to customer simultaneously. Lagrangian relaxation is applied to solve the large size problem efficiently. The second one is the competitive facility location problem with multiple competing companies. We show the effectiveness of distribution profit by collaborative decision making.