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An algorithm for solving large capacitated warehouse location problems |
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| Affiliation: | 1. Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Université Laval, 2325, Rue de la Terrasse, Quebec G1V 0A6, Canada;2. Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy;3. Canada Research Chair in Integrated Logistics, Université Laval, 2325, Rue de la Terrasse, Quebec G1V 0A6, Canada;1. Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, Trondheim NO-7491, Norway;2. Institute for Business Management, Kiel University, Kiel 24098, Germany |
| Abstract: | In this paper we present a lower bound for the capacitated warehouse location problem based upon lagrangean relaxation of a mixed-integer formulation of the problem. Feasible solution exclusion constraints are used together with problem reduction tests derived from both the original problem and the lagrangean relaxation.By incorporating the lower bound and the reduction tests into a tree search procedure we are able to solve problems involving up to 500 potential warehouse locations and 1000 customers. |
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