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An Optimization Algorithm for the Two-Echelon Capacitated Facility Location Problem

We consider Two-echelon Single source Capacitated Facility Location Problem (TSCFLP). TSCFLP is a variant or Capacitated Facility Location Problem (CFLP). which has been an important issue in boa academic and industrial aspects. Given a set or possible facility locations in two echelons (warehouse / plant), a set or customers, TSCFLP is a decision problem to find a set or facility locations to open and to determine an allocation schedule that satisfies the demands or the customers and the capacity constraints or the facilities, while minimizing the overall cost. It ran be shown that TSCFLP Is strongly NP-hard For TSCFLf, few algorithms are known. which are heuristics. We propose a disaggregated version or the standard mixed integer programming formulation or TSCFLP We also provide a class or valid Inequalities Branch-and-price algorithm with rutting plane method Is used to find an optimal solution Efficient branching strategy compatible with subproblem optimization problems Is also provided. We report computational results or tests on 15 randomly generated instances.