AIMMS - Facility Location Choice

Description

This example considers the problem of selecting distribution centers along with their associated customer zones. The mathematical model uses a simple mixed-integer linear programming formulation and can be easily solved by using a standard solver for small and medium datasets.

However, when working this type of problem with a larger datasets, you may consider re-examining your approach to the problem. One option is to decompose the problem into several smaller subproblems that are solved sequentially rather than simultaneously. One such approach, namely Benders’ decomposition is illustrated in this example.

Keywords

Distribution System Design, Mathematical Reformulation, Auxiliary Model, Mathematical Derivation, Constraint Generation

Industries

Transport & Logistics

Model Types

(Mixed) Integer Programming, Advanced Algorithms

References

Chapter 22 - A Facility Location Choice Problem in the Optimization Modeling Guide

Download AIMMS Example

You can download an AIMMS example dealing with this problem via the link below, and run it after installing the AIMMS software. If you don't have an AIMMS license yet, you can download a free license of AIMMS.

ftp://ftp.aimms.com/pub/Download/Examples/Facility Location Choice.aimmspack

Please make sure to save this file including the .aimmspack extension so that it can be opened by AIMMS.

This example application is a simplification of reality. Please do not hesitate to contact us to discuss how AIMMS enables you to build a complete optimization application that captures the full complexity of your problem.

Screenshot AIMMS Example

Facility Location Choice