×

Approximating solutions to a bilevel capacitated facility location problem with customer’s patronization toward a list of preferences. (English) Zbl 1426.90174

Summary: This paper presents a bilevel capacitated facility location problem where customers are allocated to the facilities they patronize based on a predetermined list of preferences. The bilevel problem is composed of an upper level, where a company locates facilities to minimize locating and distributing costs; and a lower level, where customers aim to maximize their preferences by being allocated to the most preferred facilities to get their demands met. The complexity of the lower level problem, which is NP-hard, demands alternatives for obtaining, in general, the follower’s rational reaction set. Hence, bilevel attainable solutions are defined for solving the bilevel problem in an efficient manner. Moreover, for obtaining valid bounds, a reformulation of the bilevel problem based on the lower level’s linear relaxation is performed. Then, a cross entropy method is implemented for obtaining solutions in the upper level; while the lower level is solved in three different manners: by a greedy randomized adaptive procedure based on preferences, by the same procedure but based on a regret cost, and by an exact method (when possible). The conducted experimentation shows the competitiveness of the proposed algorithms, in terms of solution quality and consumed time, despite the complexity of the problem’s components.

MSC:

90B80 Discrete location and assignment
90C27 Combinatorial optimization
Full Text: DOI

References:

[1] Adenso-Diaz, B.; Laguna, M., Fine-tuning of algorithms using fractional experimental designs and local search, Oper. Res., 54, 99-114 (2006) · Zbl 1167.90654
[2] Angelo, J. S.; Barbosa, H. J.C., A study on the use of heuristics to solve a bilevel programming problem, Int. Trans. Oper. Res., 22, 861-882 (2015) · Zbl 1338.90380
[3] Ausiello, G.; Protasi, M.; Marchetti-Spaccamela, A.; Gambosi, G.; Crescenzi, P.; Kann, V., Complexity and Approximation: Combinatorial Optimization Problems and Their Approximability Properties (1999), Springer: Springer Berlin · Zbl 0937.68002
[4] Bard, J. F., Practical Bilevel Optimization: Applications and Algorithms (1998), Kluwer Academic Publishers · Zbl 0943.90078
[5] Beresnev, V. L., Upper bounds for objective functions of discrete competitive facility location problems, J. App. Ind. Math., 3, 4, 419-432 (2009)
[6] Beresnev, V. L., Local Search algorithms for the problem of competitive location of enterprises, Autom. Remote Control, 73, 3, 425-439 (2012) · Zbl 1307.93014
[7] Bhadury, J.; Jaramillo, J.; Batta, R., On the use of genetic algorithms for location problems, Comput. Oper. Res., 29, 761-779 (2002) · Zbl 0995.90060
[8] Camacho-Vallejo, J. F.; Cordero-Franco, A. E.; González-Ramírez, R. G., Solving the bilevel facility location problem under preferences by a Stackelberg-evolutionary algorithm, Math. Probl. Eng., 2014, 14 (2014) · Zbl 1407.90225
[9] Cánovas, L.; García, S.; Labbé, M.; Marín, A., A strengthened formulation for the simple plant location problem with order, Oper. Res. Lett., 35, 2, 141-150 (2007) · Zbl 1149.90363
[10] Caramia, M.; Mari, R., A decomposition approach to solve a bilevel capacitated facility location problem with equity constraints, Optim. Lett. (2015)
[11] Cattrysse, D. G.; Van Wassenhove, L. N., A survey of algorithms for the generalized assignment problem, Eur. J. Oper. Res., 60, 260-272 (1992) · Zbl 0760.90071
[12] Colson, B.; Marcotte, P.; Savard, G., An overview of bilevel optimization, Ann. Oper. Res., 153, 235-256 (2007) · Zbl 1159.90483
[13] De Boer, P. T.; Kroese, D. P.; Mannor, S.; Rubinstein, R. Y., A tutorial on the cross-entropy method, Ann. Oper. Res., 134, 19-67 (2005) · Zbl 1075.90066
[14] Eiselt, H. A.; Laporte, G.; Thisse, J. F., Competitive location models: a framework and bibliography, Transp. Sci., 27, 44-54 (1993) · Zbl 0767.90006
[15] Eiselt, H. A.; Laporte, G., Sequential location problems, Eur. J. Oper. Res., 96, 2, 217-231 (1996) · Zbl 0917.90225
[16] Feo, T. A.; Resende, M. G., Greedy randomized adaptive search procedures, J. Global Optim, 6, 109-134 (1995) · Zbl 0822.90110
[17] Gallo, M.; D´Acierno, L.; Montella, B., A meta-heuristic approach for solving the urban network design problem, Eur. J. Oper. Res., 201, 144-157 (2001) · Zbl 1177.90052
[18] Hanjoul, P.; Peeters, D., Facility location problem with clients’ preference orderings, Reg. Sci. Urban Econ., 17, 451-473 (1987)
[19] Hansen, P.; Kochetov, Y.; Mladenovic, N., Lower Bounds for the Uncapacitated Facility Location Problem with User Preferences, Preprint G-2004-24 (2004), GERAD-HEC: GERAD-HEC Montreal, Canada, Mart 2004
[20] Hotelling, H., Stability in competition, Econ. J., 39, 153, 41-57 (1929)
[21] Kalashnikov, V.; Dempe, S.; Pérez-Valdéz, G. A.; Kalashnykova, N. I.; Camacho-Vallejo, J. F., Bilevel programming and applications, Math. Probl. Eng., 2015, 16 (2015) · Zbl 1394.90530
[22] Kress, D.; Pesch, E., Sequential competitive location on networks, Eur. J. Oper. Res., 217, 483-499 (2012) · Zbl 1244.90128
[23] Kücükaydin, H.; Aras, N.; Kuban Altinel, I., A leader-follower game in competitive facility location, Comput. Oper. Res., 39, 437-448 (2012) · Zbl 1251.90242
[24] Laguna, M.; Duarte, A.; Marti, R., Hybridizing the cross-entropy method: An application to the max-cut problem, Comput. Oper. Res., 36, 487-498 (2009) · Zbl 1157.90508
[25] Marcotte, P., Network design problem with congestion effects: a case of bilevel programming, Math. Program., 34, 142-162 (1986) · Zbl 0604.90053
[26] Marić, M.; Stanimirović, Z.; Milenković, N.; Djenić, A., Metaheuristic approaches to solving large-scale bilevel uncapacitated facility location problem with clients’ preferences, Yugoslav J. Oper. Res., 25, 3, 361-378 (2015) · Zbl 1451.90090
[27] Plastria, F., Static competitive facility location: An overview of optimisation approaches, Eur. J. Oper. Res., 129, 3, 461-470 (2001) · Zbl 1116.90372
[28] Potvin, J. Y.; Rousseau, J. M., A parallel route building algorithm for the vehicle routing and scheduling problem with time windows, Eur. J. Oper. Res., 66, 3, 331-340 (1993) · Zbl 0775.90154
[29] Rubinstein, R., The cross-entropy method for combinatorial and continuous optimization, Methodol. Comput. Appl. Probab., 1, 127-190 (1999) · Zbl 0941.65061
[30] Sahin, G.; Süral, H., A review of hierarchical facility location models, Comput. Oper. Res., 34, 2310-2331 (2007) · Zbl 1144.90440
[31] Serra, D.; ReVelle, C., Market capture by two competitors: the preemptive location problem, J. Reg. Sci., 34, 4, 549-561 (1994)
[32] Vasil’ev, I. L.; Klimentova, K. B., The branch and cut method for the facility location problem with client’s preferences, J. Appl. Ind. Math., 4, 3, 441-454 (2010)
[33] Vasil’ev, I. L.; Klimentova, K. B.; Kochetov, Y. A., New lower bounds for the facility location problem with clients’ preferences, Comput. Math. Math. Phys., 49, 6, 1010-1020 (2009) · Zbl 1199.91125
[34] Vicente, L. N.; Calamai, P. H., Bilevel and multilevel programming: a bibliography review, J. Glob. Optim., 5, 291-306 (1994) · Zbl 0822.90127
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.