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Martino Luis | martino@uum.edu.my

Year 2016

Logistics system of a distribution management deals with the procurement of goods or services from supply points to demand points in a timely manner. There are two main problems in distribution management which are (a) determining the number and location of facilities in the system and (b) determining the routing of vehicles to deliver goods from supply points to customers as well as the vehicle fleet. The first is referred as facility location problem and the second as vehicle routing problem. This research focuses on facility location problems where the problems arise in conditions when there is a selection for locating one or more new facilities with respect to a set of existing facilities so as to perform one or more criteria as an objective function.

In practice, the applications of the location decisions emerge in a variety of public sector such instances as schools, hospitals, ambulances, fire stations, and hazardous waste sites or in the private sector such as factories, warehouses, distribution centres, manufacturing centres, and production facilities.

One of the main areas in the facility location problems is known as multi-source Weber problem. The problem is defined as follows: we are given the location of each customer point and its corresponding demand, the transportation cost from facilities to each customer, the number of facilities to be located, and the capacity of each of these new open facilities. The objective is to locate these new open facilities and to find the allocation of customers to these open facilities that minimises the total cost that includes transportation costs as well as opening costs.

Artificial intelligence approaches such as the concept of region rejection heuristic, greedy randomized adaptive search (GRASP) and variable neighbourhood search meta-heuristics are designed to tackle this class of facility location problems.

The experiments were conducted using benchmark instances from literature. The results outperform previous published papers. We also created larger data sets and provided some comparative results found by our proposed approaches which could be used for benchmarking purposes.

Related publications:

  1. Luis, M., Salhi, S., & Nagy, G., 2011. A Guided Reactive GRASP for the Capacitated Multi-Source Weber Problem. Computers & Operations Research, 38, 1014-1024. (ABS, SCOPUS). Available at http://www.sciencedirect.com/science/article/pii/S0305054810002364
  2. Luis, M., Salhi, S., & Nagy, G., 2015. The Capacitated Multi-Source Weber Problem with Facility Fixed Cost: Constructive and GRASP-Based Heuristics. Journal of Algorithms & Computational Technology, 9(2), 215-232. (SCOPUS). Available at http://journals.sagepub.com/doi/abs/10.1260/1748-3018.9.2.215
  3. Luis, M., Lamsali, H., Imran, A., & Lin, A., 2016. A Multi-Start Heuristic for the Capacitated Planar Location-Allocation Problem with Facility Fixed Costs. Information, 19 (7A), 2441-2446. (SCOPUS). Available at http://www.information-iii.org/abs_e2.html#No7(A)-2016
  4. Luis, M., Irawan, C. A., & Imran, A., 2016. A Two-Stage Method for the Capacitated Multi-Facility Location-Allocation Problem. International Journal of Operational Research (to appear). (ABDC/ SCOPUS). Available at http://www.inderscience.com/info/ingeneral/forthcoming.php?jcode=ijor

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