Variable neighborhood search for the p-median

Consider a set L of potential locations for p facilities and a set U of locations of given users. The p-median problem is to locate simultaneously the p facilities at locations of L in order to minimize the total transportation cost for satisfying the demand of the users, each supplied from its closest facility. This model is a basic one in location theory and can also be interpreted in terms of cluster analysis where locations of users are then replaced by points in a given space. We propose several new Variable Neighborhood Search heuristics for the p-median problem and compare them with Greedy plus Interchange, and two Tabu Search heuristics.     

BEAMR: An exact and approximate model for the p-median problem

The p-median problem is perhaps one of the most well-known location–allocation models in the location science literature. It was originally defined by Hakimi in 1964 and 1965 and involves the location of p facilities on a network in such a manner that the total weighted distance of serving all demand is minimized. This problem has since been the subject of considerable research involving the development of specialized solution approaches as well as the development of many different types of extended model formats. One element of past research that has remained almost constant is the original ReVelle–Swain formulation [ReVelle CS, Swain R. Central facilities location. Geographical Analysis 1970;2:30–42]. With few exceptions as detailed in the paper, virtually no new formulations have been proposed for general use in solving the classic p-median problem. This paper proposes a new model formulation for the p-median problem that contains both exact and approximate features. This new p-median formulation is called Both Exact and Approximate Model Representation (BEAMR). We show that BEAMR can result in a substantially smaller integer-linear formulation for a given application of the p-median problem and can be used to solve for either an exact optimum or a bounded, close to optimal solution. We also present a methodological framework in which the BEAMR model can be used. Computational results for problems found in the OR_library of Beasley [A note on solving large p-median problems. European Journal of Operational Research 1985;21:270–3] indicate that BEAMR not only extends the application frontier for the p-median problem using general-purpose software, but for many problems represents an efficient, competitive solution approach.     

Dynamic facility location: The progressive p-median problem

A dynamic p-median problem is considered. Demand is changing over a given time horizon and the facilities are built one at a time at given times. Once a new facility is built, some of the customers will use its services and some of the customers will patronize an existing facility. At any given time, customers patronize the closest facility. The problem is to find the best locations for the new facilities. The problem is formulated and the two facilities case is solved by a special algorithm. The general problem is solved using the standard mathematical programming code AMPL.     

A decomposition approach for the p-median problem on disconnected graphs

The p-median problem seeks for the location of p facilities on the vertices (customers) of a graph to minimize the sum of transportation costs for satisfying the demands of the customers from the facilities. In many real applications of the p-median problem the underlying graph is disconnected. That is the case of p-median problem defined over split administrative regions or regions geographically apart (e.g. archipelagos), and the case of problems coming from industry such as the optimal diversity management problem. In such cases the problem can be decomposed into smaller p-median problems which are solved in each component k for different feasible values of p_k, and the global solution is obtained by finding the best combination of p_k medians. This approach has the advantage that it permits to solve larger instances since only the sizes of the connected components are important and not the size of the whole graph. However, since the optimal number of facilities to select from each component is not known, it is necessary to solve p-median problems for every feasible number of facilities on each component. In this paper we give a decomposition algorithm that uses a procedure to reduce the number of subproblems to solve. Computational tests on real instances of the optimal diversity management problem and on simulated instances are reported showing that the reduction of subproblems is significant, and that optimal solutions were found within reasonable time.     

Efficient approximate solution methods for the multi-commodity capacitated multi-facility Weber problem

The capacitated multi-facility Weber problem is concerned with locating I capacitated facilities in the plane to satisfy the demand of J customers with the minimum total transportation cost of a single commodity. This is a nonconvex optimization problem and difficult to solve. In this work, we focus on a multi-commodity extension and consider the situation where K distinct commodities are shipped subject to capacity constraints between each customer and facility pair. Customer locations, demands and capacities for each commodity, and bundle restrictions are known a priori. The transportation costs, which are proportional to the distance between customers and facilities, depend on the commodity type. We address several location-allocation and discrete approximation heuristics using different strategies. Based on the obtained computational results we can say that the alternate solution of location and allocation problems is a very efficient strategy; but the discrete approximation has excellent accuracy.     

Applied p-median and p-center algorithms for facility location problems

Facility location problems with the objective to minimize the sum of the setup cost and transportation cost are studied in this paper. The setup and transportation costs are considered as a function of the number of opened facilities. Three methods are introduced to solve the problem. The facility location model with bounds for the number of opened facility is constructed in this work. The relationship between setup cost and transportation cost is studied and used to build these methods based on greedy algorithm, p-median algorithm and p-center algorithm. The performance of the constructed methods is tested using 100 random data sets. In addition, the networks representing the road transportation system of Chiang Mai city and 5 provinces in Northern Thailand are illustrated and tested using all presented methods. Simulation results show that the method developed from greedy algorithm is suitable for solving problems when the setup cost is higher than transportation cost while the opposite cases are more efficiently solved with the method developed by the p-median problem.     

Supply facility and input/output point locations in the presence of barriers

This paper studies a facility location model in which two-dimensional Euclidean space represents the layout of a shop floor. The demand is generated by fixed rectangular-shaped user sites and served by a single supply facility. It is assumed that (i) communication between the supply point and a demand facility occurs at an input/output (I/O) point on the demand facility itself, (ii) the facilities themselves pose barriers to travel and (iii) distance measurement is as per the L₁-metric. The objective is to determine optimal locations of the supply facility as well as I/O points on the demand facilities, in order to minimize total transportation costs. Several, increasingly more complex, versions of the model are formulated and polynomial time algorithms are developed to find the optimal locations in each case.Scope and purposeIn a facility layout setting, often a new central supply facility such as a parts supply center or tool crib needs to be located to serve the existing demand facilities (e.g., workstations or maintenance areas). The demand facilities are physical entities that occupy space, that cannot be traveled through, and that receive material from the central facility, through a perimeter I/O (input/output or drop-off/pick-up) point. This paper addresses the joint problem of locating the central facility and determining the I/O point on each demand facility to minimize the total material transportation cost. Different versions of this problem are considered. The solution methods draw from and extend results of location theory for a class of restricted location problems. For practitioners, simple results and polynomial time algorithms are developed for solving these facility (re) design problems.     

Solving a class of facility location problems using genetic algorithms

Locating p facilities to serve a number of customers is a problem in many areas of business. The problem is to determine p facility locations such that the weighted average distance traveled from all the demand points to their nearest facility sites is minimized. A variant of the p-median problem is one in which a maximum distance constraint is imposed between the demand point and its nearest facility location, also known as the p-median problem with maximum distance constraint. In this paper, we apply a fairly new methodology known as genetic algorithms to solve a relatively large sized constrained version of the p -median problem. We present our computational experience on the use of genetic algorithms for solving the constrained version of the p-median problem using two different data sets. Our comparative experimental experience shows that this solution procedure performs quite well compared with the results obtained from existing techniques.     

Heuristics for a continuous multi-facility location problem with demand regions

We consider a continuous multi-facility location allocation problem where the demanding entities are regions in the plane instead of points. The problem can be stated as follows: given m (closed, convex) polygonal demand regions in the plane, find the locations of q facilities and allocate each region to exactly one facility so as to minimize a weighted sum of squares of the maximum Euclidean distances between the demand regions and the facilities they are assigned to.We propose mathematical programming formulations of the single and multiple facility versions of the problem considered. The single facility location problem is formulated as a second order cone programming (SOCP) problem, and hence is solvable in polynomial time. The multiple facility location problem is NP-hard in general and can be formulated as a mixed integer SOCP problem. This formulation is weak and does not even solve medium-size instances. To solve larger instances of the problem we propose three heuristics. When all the demand regions are rectangular regions with their sides parallel to the standard coordinate axes, a faster special heuristic is developed. We compare our heuristics in terms of both solution quality and computational time.     

Risk management in uncapacitated facility location models with random demands

In this paper we consider a location-optimization problem where the classical uncapacitated facility location model is recast in a stochastic environment with several risk factors that make demand at each customer site probabilistic and correlated with demands at the other customer sites. Our primary contribution is to introduce a new solution methodology that adopts the mean–variance approach, borrowed from the finance literature, to optimize the “Value-at-Risk” (VaR) measure in a location problem. Specifically, the objective of locating the facilities is to maximize the lower limit of future earnings based on a stated confidence level. We derive a nonlinear integer program whose solution gives the optimal locations for the p facilities under the new objective. We design a branch-and-bound algorithm that utilizes a second-order cone program (SOCP) solver as a subroutine. We also provide computational results that show excellent solution times on small to medium sized problems.     

New Algorithms for Facility Location Problems on the Real Line

In this paper, we study the facility location problems on the real line. Given a set of n customers on the real line, each customer having a cost for setting up a facility at its position, and an integer k, we seek to find at most k of the customers to set up facilities for serving all n customers such that the total cost for facility set-up and service transportation is minimized. We consider several problem variations including the k-median, the k-coverage, and the linear model. The previously best algorithms for these problems all take O(nk) time. Our new algorithms break the O(nk) time bottleneck and solve these problems in sub-quadratic time. Our algorithms are based on a new problem modeling and interesting algorithmic techniques, which may find other applications as well.     

A dynamic multi-objective approach for the reconfigurable multi-facility layout problem

The multi-facility layout problem involves the physical organization of departments inside several facilities, to allow flexible and efficient operations. This work studies the facility layout problem in a new perspective, considering a group of facilities, and two different concerns: the location of departments within a group of facilities, and the location of departments inside each facility itself. The problem is formulated as a Quadratic Programming Problem with multiple objectives and unequal areas, allowing layout reconfigurations in each planning period. The objectives of the model are: the minimization of costs (material handling inside facilities and between facilities, and re-layout); the maximization of adjacency between departments; and the minimization of the “unsuitability” of department positions and locations. This unsuitability measure is a new objective proposed in this work, to combine the characteristics of existing locations with the requirements of departments. The model was tested with data from the literature as well as with a problem inspired in a first tier supplier in the automotive industry. Preliminary results show that this work can be viewed as an innovative and promising integrated approach for tackling real, complex facility layout problems.     

Lagrangean relaxation and decomposition in an uncapacitated 2-hierarchal location-allocation problem

We consider an uncapacitated 2-hierarchal location-allocation problem where p₁ level 1 facilities and p₂ level 2 facilities are to be located among n(?p₁ + p₂) potential locations so as to minimize the total weighted travel distance to the facilities when θ, (0 ? θ ? 1) fraction of the demand from a level 1 facility is referred to a level 2 facility. At most one facility may be located at any location. In this model, a level 2 facility provides services in addition to services provided by a level 1 facility.The problem is formulated as a mathematical programming problem, relaxed and solved by a subgradient optimization procedure. The proposed procedure is illustrated with an example.     

The p-median problem in a changing network: the case of Barcelona

In this paper a p-median-like model is formulated to address the issue of locating new facilities when there is uncertainty in demand, travel times or distance. Given several possible scenarios, the planner would like to choose a set of locations that will perform as well as possible over all future scenarios. This paper presents a discrete location model formulation to address this p-median problem under uncertainty. The model is applied to the location of fire stations in Barcelona.     

A bilevel fixed charge location model for facilities under imminent attack

We investigate a bilevel fixed charge facility location problem for a system planner (the defender) who has to provide public service to customers. The defender cannot dictate customer-facility assignments since the customers pick their facility of choice according to its proximity. Thus, each facility must have sufficient capacity installed to accommodate all customers for whom it is the closest one. Facilities can be opened either in the protected or unprotected mode. Protection immunizes against an attacker who is capable of destroying at most r unprotected facilities in the worst-case scenario. Partial protection or interdiction is not possible. The defender selects facility sites from m candidate locations which have different costs. The attacker is assumed to know the unprotected facilities with certainty. He makes his interdiction plan so as to maximize the total post-attack cost incurred by the defender. If a facility has been interdicted, its customers are reallocated to the closest available facilities making capacity expansion necessary. The problem is formulated as a static Stackelberg game between the defender (leader) and the attacker (follower). Two solution methods are proposed. The first is a tabu search heuristic where a hash function calculates and records the hash values of all visited solutions for the purpose of avoiding cycling. The second is a sequential method in which the location and protection decisions are separated. Both methods are tested on 60 randomly generated instances in which m ranges from 10 to 30, and r varies between 1 and 3. The solutions are further validated by means of an exhaustive search algorithm. Test results show that the defender's facility opening plan is sensitive to the protection and distance costs.     

The big cube small cube solution method for multidimensional facility location problems

In this paper we propose a general solution method for (non-differentiable) facility location problems with more than two variables as an extension of the Big Square Small Square technique (BSSS). We develop a general framework based on lower bounds and discarding tests for every location problem. We demonstrate our approach on three problems: the Fermat–Weber problem with positive and negative weights, the median circle problem, and the p-median problem. For each of these problems we show how to calculate lower bounds and discarding tests. Computational experiences are given which show that the proposed solution method is fast and exact.     

Median problems on wheels and cactus graphs

Summary This paper is dedicated to location problems on graphs. We propose a linear time algorithm for the 1-median problem on wheel graphs. Moreover, some general results for the 1-median problem are summarized and parametric median problems are investigated. These results lead to a solution method for the 2-median problem on cactus graphs, i.e., on graphs where no two cycles have more than one vertex in common. The time complexity of this algorithm is , where n is the number of vertices of the graph.      

A modified simple heuristic for the p-median problem, with facilities design applications

Facilities design is closely related to efficient use of available resources. This paper presents a heuristic approach to solve two core problems of a good facilities design: facility location and facility layout. The latter group of problems will be solved for warehouse and production systems in particular. All these problems can be formulated as p-median clustering problems. Teitz and Bart (Oper. Res. 16 (1968) 955–961) developed the vertex substitution method to solve those problems. This paper introduces effective improvements on this heuristic. The approach is tested on a large number of randomly generated cases and on problems taken from the literature. The results demonstrate the effectiveness and superiority of our method.     

A bilevel mixed-integer program for critical infrastructure protection planning

Vulnerability to sudden service disruptions due to deliberate sabotage and terrorist attacks is one of the major threats of today. In this paper, we present a bilevel formulation of the r-interdiction median problem with fortification (RIMF). RIMF identifies the most cost-effective way of allocating protective resources among the facilities of an existing but vulnerable system so that the impact of the most disruptive attack to r unprotected facilities is minimized. The model is based upon the classical p-median location model and assumes that the efficiency of the system is measured in terms of accessibility or service provision costs. In the bilevel formulation, the top level problem involves the decisions about which facilities to fortify in order to minimize the worst-case efficiency reduction due to the loss of unprotected facilities. Worst-case scenario losses are modeled in the lower-level interdiction problem. We solve the bilevel problem through an implicit enumeration (IE) algorithm, which relies on the efficient solution of the lower-level interdiction problem. Extensive computational results are reported, including comparisons with earlier results obtained by a single-level approach to the problem.     

Exact optimal solutions of the minisum facility and transfer points location problems on a network

We consider hierarchical facility location problems on a network called Multiple Location of Transfer Points (MLTP) and Facility and Transfer Points Location Problem (FTPLP), where q facilities and p transfer points are located and each customer goes to one of the facilities directly or via one of the transfer points. In FTPLP, we need to find an optimal location of both the facilities and the transfer points while the location of facilities is given in MLTP. Although good heuristics have been proposed for the minisum MLTP and FTPLP, no exact optimal solution has been tested due to the size of the problems. We show that the minisum MLTP can be formulated as a p‐median problem, which leads to obtaining an optimal solution. We also present a new formulation of FTPLP and an enumeration‐based approach to solve the problems with a single facility.