On a general network location-production-allocation problem

In this paper we consider a network location-production-allocation problem in which demands are related to prices at markets. Profit maximization is achieved through the simultaneous determinations of plant locations and shipments between plants and markets. We show that even subproblems of some spe...

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Bibliographic Details
Published in:European journal of operational research 1991-11, Vol.55 (1), p.31-45
Main Authors: Louis Hakimi, S., Kuo, Ching-Chung
Format: Article
Language:English
Subjects:
Algorithms
allocation
Applied sciences
Computational analysis
Exact sciences and technology
Flows in networks. Combinatorial problems
Heuristic
Integer programming
location
Mathematical models
Operational research and scientific management
Operational research. Management science
Operations research
Plant location
production
Production costs
Resource allocation
Studies
Theory
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Summary:In this paper we consider a network location-production-allocation problem in which demands are related to prices at markets. Profit maximization is achieved through the simultaneous determinations of plant locations and shipments between plants and markets. We show that even subproblems of some special cases of this general problem are NP-hard. For the NP-hard plant allocation problem, both a dynamic programming formulation and two heuristic algorithms are proposed. Empirical results reveal that both heuristic algorithms are attractive in practice, with one of them performing exceptionally well. We also show that the problem has a class of interesting special cases which can be solved in polynomial time.
ISSN:0377-2217
1872-6860
DOI:10.1016/0377-2217(91)90189-3