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A bi-level programming model and solution algorithm for the location of logistics distribution centers. (English) Zbl 1171.90409
Summary: By considering benefits of customers and logistics planning departments, a bi-level programming model is presented to seek the optimal location for logistics distribution centers. The upper-level model is to determine the optimal location by minimizing the planners’ cost, and the lower gives an equilibrium demand distribution by minimizing the customers’ cost. Based on the special form of constraints, a simple heuristic algorithm is proposed. Finally, a numerical example is used to illustrate the application of the method, which shows that the algorithm is feasible and advantageous.
MSC:
90B35Scheduling theory, deterministic
90C59Approximation methods and heuristics