A Lagrangean Relaxation Algorithm for the Simple Plant Location Problem with Preferences

Abstract

The Simple Plant Location Problem with Order (SPLPO) is a variant of the Simple Plant Location Problem (SPLP), where the customers have preferences over the facilities which will serve them. In particular, customers define their preferences by ranking each of the potential facilities. Even though the SPLP has been widely studied in the literature, the SPLPO has been studied much less and the size of the instances that can be solved is very limited. In this paper, we propose a heuristic that uses a Lagrangean relaxation output as a starting point of a semi-Lagrangean relaxation algorithm to find good feasible solutions (often the optimal solution). We carry out a computational study to illustrate the good performance of our method.