An Improved Algorithm for Solving a Multi-Period Facility Location Problem

An exact algorithm for the multi-period facility location problem is proposed that efficiently integrates mixed-integer and dynamic programming methods. Two simplification procedures are introduced to reduce the size of the general multi-period facility location problem substantially. Because the proposed algorithm utilizes dynamic programming to obtain the optimal sequence over the entire planning horizon, many near-optimal solutions also become available that are extremely useful for postoptimality analysis. The solution method is tested and compared with a well-known procedure on several problems with varying conditions. The comparisons appear very promising, and the required CPU times by the proposed method are substantially reduced.