Solution of Discrete Competitive Facility Location Problem for Firm Expansion

Article type: Research Article

Authors: Lančinskas, Algirdas^{1; *} | Fernández, Pascual² | Pelegrín, Blas² | Žilinskas, Julius¹

Affiliations: [1] Institute of Mathematics and Informatics, Vilnius University, Akademijos 4, LT-08663, Vilnius, Lithuania. E-mails: algirdas.lancinskas@mii.vu.lt, julius.zilinskas@mii.vu.lt | [2] Department of Statistics and Operations Research, University of Murcia, Spain. E-mails: pelegrin@um.es, pfdez@um.es

Correspondence: [*] Corresponding author.

Abstract: A new heuristic algorithm for solution of bi-objective discrete competitive facility location problems is developed and experimentally investigated by solving different instances of a facility location problem for firm expansion. The proposed algorithm is based on ranking of candidate locations for the new facilities, where rank values are dynamically adjusted with respect to behaviour of the algorithm. Results of the experimental investigation show that the proposed algorithm is suitable for the latter facility location problems and provides good results in sense of accuracy of the approximation of the true Pareto front.

Keywords: facility location, multi-objective optimization, heuristic algorithms

Journal: Informatica, vol. 27, no. 2, pp. 451-462, 2016