Location of congested capacitated facilities with distance-sensitive demand

In this paper we investigate the problem of locating a given number of facilities on a network. Demand generated at a node is distance dependent, i.e., it decreases with an increase in the distance. The facilities can serve no more than a given number of customers, thus they are capacitated and congested when they reach that limit. The objective function is to maximize the demand satisfied by the system given these constraints. An elegant solution is given for the location of one facility. The multiple facility problem is formulated and heuristic algorithms proposed for its solution. Computational experiments are reported.

Acknowledgements

This research was supported by a grant from NSERC. We also would like to thank the referees for their useful suggestions.

Notes

*Optimal.

**Not run because of excessive computer time requirement.

^†% of replications BK found for 37 problems run by all.

**Not run because of excessive computer time requirement.