A tree search algorithm for the multi-commodity location problem

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The multi-commodity location problem is an extension of the simple plant location problem. The problem is to decide on locations of facilities to meet customer demands for several commodities in such a way that total fixed plus variable costs are minimized. Only one commodity may be supplied from any location. In this paper a primal and a dual heuristic for producing good bounds are presented. A method of improving these bounds by using a new Lagrangean relaxation for the problem is also presented. Computational results with problems taken from the literature are provided.











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