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Comparison of Two Heuristic Algorithms for a Location and Design Problem

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Models, Algorithms, and Technologies for Network Analysis (NET 2016)

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Abstract

The article is devoted to the decision-making methods for the following location and design problem. The Company is planning to locate its facilities and gain profit at an already existing market. Therefore it has to take into consideration such circumstances as already placed competing facilities; the presence of several projects for each facility opening; the share of the served demand is flexible and depends on the facility location. The aim of the Company is to determine its new facilities locations and options in order to attract the biggest share of the demand. Modeling flexible demand requires exploiting nonlinear functions which complicates the development of the solution methods. A Variable Neighborhoods Search algorithm and a Greedy Weight Heuristic are proposed. The experimental analysis of the algorithms for the instances of special structure has been carried out. New best known solutions have been found, thus denoting the perspective of the further research in this direction.

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Acknowledgements

This research was supported by the Russian Foundation for Basic Research, grant 15-07-01141.

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Correspondence to Alexander Gnusarev .

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Gnusarev, A. (2017). Comparison of Two Heuristic Algorithms for a Location and Design Problem. In: Kalyagin, V., Nikolaev, A., Pardalos, P., Prokopyev, O. (eds) Models, Algorithms, and Technologies for Network Analysis. NET 2016. Springer Proceedings in Mathematics & Statistics, vol 197. Springer, Cham. https://doi.org/10.1007/978-3-319-56829-4_4

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