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Practical approach to a facility location problem for large-scale logistics

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Algorithms and Computation (ISAAC 1997)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 1350))

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Abstract

We developed a new practical optimization method that gives approximate solutions for large-scale real instances of the Uncapacitated Facility Location Problem. The optimization consists of two steps: application of the Greedy — Interchange heuristic using a small subset of warehouse candidates, and application of the newly developed heuristic named Balloon Search that takes account of all warehouse candidates. Our experiments on the spare parts logistics of a Japanese manufacturing company with 6,000 customers and 780,000 warehouse candidates led us to conclude that the Greedy heuristic improved the total cost by 9% – 11%, that the Interchange heuristic improved the total cost by an additional 0.5% – 1.5%, and that the Balloon Search improved it by a further 0.5% – 1.5%.

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Authors and Affiliations

  1. Tokyo Research Laboratory, Japan

    Kazuyoshi Hidaka & Hiroyuki Okano

Authors
  1. Kazuyoshi Hidaka
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  2. Hiroyuki Okano
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Editor information

Hon Wai Leong Hiroshi Imai Sanjay Jain

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© 1997 Springer-Verlag Berlin Heidelberg

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Hidaka, K., Okano, H. (1997). Practical approach to a facility location problem for large-scale logistics. In: Leong, H.W., Imai, H., Jain, S. (eds) Algorithms and Computation. ISAAC 1997. Lecture Notes in Computer Science, vol 1350. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-63890-3_3

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  • DOI: https://doi.org/10.1007/3-540-63890-3_3

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-63890-2

  • Online ISBN: 978-3-540-69662-9

  • eBook Packages: Springer Book Archive

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