Abstract
A new location problem is formulated and solved. It is the continuous version of the grey pattern problem which is a special case of the Quadratic Assignment Problem. The problem is a minimization of a convex function subject to non-convex constraints and has infinitely many optimal solutions. We propose several mathematical programming formulations that are suitable for a multi-start heuristic algorithm. In addition to solving these formulations by the Solver in Excel and Mathematica, a special Nelder–Mead algorithm is proposed. This special algorithm provided the best results. One suggested modification may improve the performance of the Nelder–Mead algorithm for other optimization problems as well.