Title :
Capacitated facility location problem with freight cost discount
Author :
Gao, Dapeng ; Jiao, Wen ; Zhang, Juliang
Author_Institution :
Dept. of Logistics Manage., Beijing Jiaotong Univ., Beijing, China
Abstract :
In reality, unit shipment cost is a decreasing function in shipment volume because of economics of scale. In this paper, we extend the capacitated facility location problem (CFLP) considering discounted freight cost. We formulate this problem as a mixed integer linear problem (MILP), and minimize the total cost including setup costs for opening the facilities and transportation costs with freight cost discount. Based on the special structure of the MILP, a Benders decomposition algorithm is proposed to solve it.
Keywords :
cost reduction; facility location; freight handling; integer programming; linear programming; Benders decomposition algorithm; CFLP; MILP; capacitated facility location problem; freight cost discount; mixed integer linear problem; unit shipment cost; Communication networks; Cost function; Hospitals; Linear programming; Logistics; NP-hard problem; Production facilities; Shipbuilding industry; Transportation; Benders decomposition method; facility location problem; freight cost discount;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2010 7th International Conference on
Conference_Location :
Tokyo
Print_ISBN :
978-1-4244-6485-2
DOI :
10.1109/ICSSSM.2010.5530233
