AN ALGORITHM FOR SOLVING LARGE CAPACITATED WAREHOUSE LOCATION-PROBLEMS

In this paper we present a lower bound for the capacitated warehouse location problem based upon lagrangean relaxation of a mixed-integer formulation of the problem. Feasible solution exclusion constraints are used together with problem reduction tests derived from both the original problem and the lagrangean relaxation. By incorporating the lower bound and the reduction tests into a tree search procedure we are able to solve problems involving up to 500 potential warehouse locations and 1000 customers.