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Three formulations of the multi-type capacitated facility location problem

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The "multi-type" or "modular" capacitated facility location problem is a discrete location model that addresses non-convex piecewise linear production costs as, for instance, staircase cost functions. The literature basically distinguishes three different ways to formulate non-convex piecewise linear cost minimization problems: the convex combination model, the incremental model and the multiple choice model. All three models are generally equivalent, but in case of the MCFLP, the latter one allows to include additional variable upper bounds (implied bounds) that strengthen the LP relaxation. We show that the latter formulation, with these inequalities included, strictly dominates the other two ways of formulating the problem. We additionally investigate different strategies of including these variable upper bounds within the model using a common MIP solver.
Original languageEnglish
Publication year31 Aug 2011
Number of pages1
Publication statusPublished - 31 Aug 2011
EventInternational Conference on Operations Research - Zürich, Switzerland
Duration: 30 Aug 20112 Sep 2011


ConferenceInternational Conference on Operations Research

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