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Aggressive reduction for solving large Simple Plant Location Problems
Wednesday 1 December 2010, 13:00
LT5, Management School
Abstract: In the Simple Plant Location Problem (SPLP) we have a set I of locations and a set J of clients. For any location i, the fixed cost of opening a facility at i is fi. For any location i and any client j, the cost of serving client j from an open facility at location i is cij. The task is to decide where to open facilities, and to assign each client to exactly one open facility, such that the total cost is minimised.
In a recent paper Pisinger, Rasmussen and Sandvik introduced the concept of 'aggressive reduction' for large-scale combinatorial optimisation problems. The idea is to spend much time and effort in reducing the size of the instance, using information obtained from a sequence of fast upper- and lower- bounding procedures. The hope is that the reduced instance will then be small enough to be solved by an exact algorithm.
Pisinger et al. presented an aggressive reduction scheme for the quadratic knapsack problem. Here, we present an aggressive reduction scheme for the simple plant location problem.