Abstract
Classical facility location models can generate solutions that do not maintain consistency in the set of utilized facilities as the number of utilized facilities is varied. We introduce the concept of nested facility locations, in which the solution utilizing p facilities is a subset of the solution utilizing q facilities, for all \(i \le p < q \le j\), given some lower limit i and upper limit j on r, the number of facilities that will be utilized in the future. This approach is demonstrated with application to the p-median model, with computational testing showing these new models achieve reductions in both average regret and worst-case regret when \(r \ne p\) facilities are actually utilized.
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Research reported in this manuscript was supported by the National Institute of General Medical Sciences of the National Institutes of Health under Award Number P20GM104417. The content is solely the responsibility of the authors and does not necessarily represent the official views of the National Institutes of Health.
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McGarvey, R.G., Thorsen, A. Nested-solution facility location models. Optim Lett 16, 497–514 (2022). https://doi.org/10.1007/s11590-021-01759-4
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DOI: https://doi.org/10.1007/s11590-021-01759-4