An Improved Algorithm for the Multi-commodity Location Problem

Distribution systems designs commonly require the optimal location decisions of regional ware-houses or distribution centers which function as intermediate facilities between plants and customers. This paper deals with such a location problem in which the facilities can handle one of several commodities. We term this problem the multi-commodity facility location problem. A branch and bound algorithm is proposed for solving this problem. Improved bounds are developed for increasing the efficiency of the algorithm. Computational results are provided.