Hybrid Algorithm for the Facility Location Problem based on density based Clustering and Profit maximization

Abstract

The objective in the allocation of the facility depends up to the situation under consideration. For instance, in case of ATM, shopping malls, public utility services like schools, hospitals, etc. the facility is assigned, to such locations where the density of the users is more so that the facility will be utilized by as large as possible users. In such situation, the profit is at second priority as compared to utilization of facility. In this paper, we consider the same scenario and provide a hybrid algorithm for the solution of facility allocation problem. In the first-step, we use DBSCAN clustering technique, and after clustering, mixed integer linear programming technique is used in each cluster to get the best facility which will generate the maximum profit. Flowchart of the proposed algorithm and numerical example is presented.