Models and algorithms for locating facilities with hybrid demand for service

Abstract

We developed a new model for locating facilities with demand that are originated from both residential areas and from passing by flows. A mixed integer program is proposed with the objective function of maximum the total profit gained by serving both types of customers. Since the problem is NP-hard, greedy heuristic and improved greedy heuristic are proposed. The improved greedy heuristic presented solves the computational experiments with competitive results, while the run time is much less than that of the optimal method. The sensitivity of the optimal locations to the input parameters is analyzed with an example network and the results are reported., © 2014 Springer-Verlag Berlin Heidelberg..