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Facility location problems with user cooperation

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Abstract

This paper introduces the concept of cooperative users in facility location problems with a median or a covering objective. Cooperative users can act as intermediate facilities which are more accessible than primary facilities to excentric users. Four versions of location problems with cooperative users are modeled, for all four combinations of median and covering objectives. Several families of valid inequalities are then presented. This is followed by the development of a non-linear model to assess the fair price of cooperation. The results of computational experiments on randomly generated and benchmark instances demonstrate the positive effect of having cooperative users on the solution structure and cost, as well the impact of the valid inequalities on the LP relaxation value and on the CPU time.

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Acknowledgements

This work was partially funded by the Canadian Natural Sciences and Engineering Research Council under grant 2015-06189 and by Spanish Ministerio de Economía y Competividad (MINECO/FEDER) project MTM-2015-68097(P). This support is gratefully acknowledged. We want to express our deep appreciation to the reviewers for their valuable comments, some of which have lead to significant improvements

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Correspondence to Mercedes Landete.

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Landete, M., Laporte, G. Facility location problems with user cooperation. TOP 27, 125–145 (2019). https://doi.org/10.1007/s11750-018-00496-9

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