Bilevel models on the competitive facility location problem

Facility location and allocation problems have been a major area of research for decades, which has led to a vast and still growing literature. Although there are many variants of these problems, there exist two common features: finding the best locations for one or more facilities and allocating demand points to these facilities. A considerable number of studies assume a monopolistic viewpoint and formulate a mathematical model to optimize an objective function of a single decision maker. In contrast, competitive facility location (CFL) problem is based on the premise that there exist competition in the market among different firms. When one of the competing firms acts as the leader and the other firm, called the follower, reacts to the decision of the leader, a sequential-entry CFL problem is obtained, which gives rise to a Stackelberg type of game between two players. A successful and widely applied framework to formulate this type of CFL problems is bilevel programming (BP). In this chapter, the literature on BP models for CFL problems is reviewed, existing works are categorized with respect to defined criteria, and information is provided for each work.WOS:000418225000002Scopus - Affiliation ID: 60105072Book Citation Index- Science - Book Citation Index- Social Sciences and HumanitiesArticle; Book ChapterOcak2017YÖK - 2016-1

Bilevel facility location problems: theory and applications.

In this doctoral thesis we focus on studying facility location problems considering customer preferences. In these problems, there is a set of customers or users who demand a service or product that must be supplied by one or more facilities. By facilities it is understood some object or structure that offers some service to customers. One of the most important assumptions is that customers have established their own preferences over the facilities and should be taken into account in the customer-facility assignment. In real life, customers choose facilities based on costs, preferences, a predetermined contract, or a loyalty coefficient, among others. That is, they are free to choose the facilities that will serve them. The situation described above is commonly modeled by bilevel programming, where the upper level corresponds to location decisions to optimize a predefined criteria, such as, minimize location and distribution costs or maximize the demand covered by the facilities; and the lower level is associated to -customer allocation- to optimize customer preferences. The hierarchy among both levels is justified because the decision taken in the upper level directly affects the decision’s space in the lower level

Multilevel decision-making: A survey

© 2016 Elsevier Inc. All rights reserved. Multilevel decision-making techniques aim to deal with decentralized management problems that feature interactive decision entities distributed throughout a multiple level hierarchy. Significant efforts have been devoted to understanding the fundamental concepts and developing diverse solution algorithms associated with multilevel decision-making by researchers in areas of both mathematics/computer science and business areas. Researchers have emphasized the importance of developing a range of multilevel decision-making techniques to handle a wide variety of management and optimization problems in real-world applications, and have successfully gained experience in this area. It is thus vital that a high quality, instructive review of current trends should be conducted, not only of the theoretical research results but also the practical developments in multilevel decision-making in business. This paper systematically reviews up-to-date multilevel decision-making techniques and clusters related technique developments into four main categories: bi-level decision-making (including multi-objective and multi-follower situations), tri-level decision-making, fuzzy multilevel decision-making, and the applications of these techniques in different domains. By providing state-of-the-art knowledge, this survey will directly support researchers and practical professionals in their understanding of developments in theoretical research results and applications in relation to multilevel decision-making techniques

Analyzing the Performance of a Hybrid Heuristic for Solving a Bilevel Location Problem under Different Approaches to Tackle the Lower Level

The problem addressed here is a combinatorial bilevel programming problem called the uncapacitated facility location problem with customer’s preferences. A hybrid algorithm is developed for solving a battery of benchmark instances. The algorithm hybridizes an evolutionary algorithm with path relinking; the latter procedure is added into the crossover phase for exploring the trajectory between both parents. The proposed algorithm outperforms the evolutionary algorithm already existing in the literature. Results show that including a more sophisticated procedure for improving the population through the generations accelerates the convergence of the algorithm. In order to support the latter statement, a reduction of around the half of the computational time is obtained by using the hybrid algorithm. Moreover, due to the nature of bilevel problems, if feasible solutions are desired, then the lower level must be solved for each change in the upper level’s current solution. A study for illustrating the impact in the algorithm’s performance when solving the lower level through three different exact or heuristic approaches is made

Integer Bilevel Linear Programming Problems: New Results and Applications

Integer Bilevel Linear Programming Problems: New Results and Application

Integer Bilevel Linear Programming Problems: New Results and Applications

Integer Bilevel Linear Programming Problems: New Results and Application

Analyzing the Performance of a Hybrid Heuristic for Solving a Bilevel Location Problem under Different Approaches to Tackle the Lower Level

The problem addressed here is a combinatorial bilevel programming problem called the uncapacitated facility location problem with customer’s preferences. A hybrid algorithm is developed for solving a battery of benchmark instances. The algorithm hybridizes an evolutionary algorithm with path relinking; the latter procedure is added into the crossover phase for exploring the trajectory between both parents. The proposed algorithm outperforms the evolutionary algorithm already existing in the literature. Results show that including a more sophisticated procedure for improving the population through the generations accelerates the convergence of the algorithm. In order to support the latter statement, a reduction of around the half of the computational time is obtained by using the hybrid algorithm. Moreover, due to the nature of bilevel problems, if feasible solutions are desired, then the lower level must be solved for each change in the upper level’s current solution. A study for illustrating the impact in the algorithm’s performance when solving the lower level through three different exact or heuristic approaches is made

On green routing and scheduling problem

The vehicle routing and scheduling problem has been studied with much interest within the last four decades. In this paper, some of the existing literature dealing with routing and scheduling problems with environmental issues is reviewed, and a description is provided of the problems that have been investigated and how they are treated using combinatorial optimization tools

An investigation of models for identifying critical components in a system.

Lai, Tsz Wai.Thesis (M.Phil.)--Chinese University of Hong Kong, 2011.Includes bibliographical references (leaves 193-207).Abstracts in English and Chinese.Chapter 1 --- Introduction --- p.1Chapter 1.1 --- Overview --- p.1Chapter 1.2 --- Contributions --- p.2Chapter 1.3 --- Organization --- p.2Chapter 2 --- Literature Review --- p.4Chapter 2.1 --- Taxonomy --- p.4Chapter 2.2 --- Design of Infrastructure --- p.6Chapter 2.2.1 --- Facility Location Models --- p.7Chapter 2.2.1.1 --- Random Breakdowns --- p.7Chapter 2.2.1.2 --- Deliberate Attacks --- p.8Chapter 2.2.2 --- Network Design Models --- p.9Chapter 2.3 --- Protection of Existing Components --- p.10Chapter 2.3.1 --- Interdiction Models --- p.11Chapter 2.3.2 --- Facility Location Models --- p.12Chapter 2.3.2.1 --- Random Breakdowns --- p.12Chapter 2.3.2.2 --- Deliberate Attacks --- p.12Chapter 2.3.3 --- Network Design Models --- p.14Chapter 3 --- Identifying Critical Facilities: Median Problem --- p.16Chapter 3.1 --- Introduction --- p.16Chapter 3.2 --- Problem Formulation --- p.18Chapter 3.2.1 --- The p-Median Problem --- p.18Chapter 3.2.1.1 --- A Toy Example --- p.19Chapter 3.2.1.2 --- Problem Definition --- p.21Chapter 3.2.1.3 --- Mathematical Model --- p.22Chapter 3.2.2 --- The r-Interdiction Median Problem --- p.24Chapter 3.2.2.1 --- The Toy Example --- p.24Chapter 3.2.2.2 --- Problem Definition --- p.27Chapter 3.2.2.3 --- Mathematical Model --- p.28Chapter 3.2.3 --- The r-Interdiction Median Problem with Fortification --- p.29Chapter 3.2.3.1 --- The Toy Example --- p.30Chapter 3.2.3.2 --- Problem Definition --- p.32Chapter 3.2.3.3 --- Mathematical Model --- p.33Chapter 3.2.4 --- The r-Interdiction Median Problem with Fortification (Bilevel Formulation) --- p.35Chapter 3.2.4.1 --- Mathematical Model --- p.36Chapter 3.3 --- Solution Methodologies --- p.38Chapter 3.3.1 --- Model Reduction --- p.38Chapter 3.3.2 --- Variable Consolidation --- p.40Chapter 3.3.3 --- Implicit Enumeration --- p.45Chapter 3.4 --- Results and Discussion --- p.48Chapter 3.4.1 --- Data Sets --- p.48Chapter 3.4.1.1 --- Swain --- p.48Chapter 3.4.1.2 --- London --- p.49Chapter 3.4.1.3 --- Alberta --- p.49Chapter 3.4.2 --- Computational Study --- p.50Chapter 3.4.2.1 --- The p-Median Problem --- p.50Chapter 3.4.2.2 --- The r-Interdiction Median Problem --- p.58Chapter 3.4.2.3 --- The r-Interdiction Median Problem with Fortification --- p.63Chapter 3.4.2.4 --- The r-Interdiction Median Problem with Fortification (Bilevel Formulation) --- p.68Chapter 3.5 --- Summary --- p.76Chapter 4 --- Hybrid Approaches --- p.79Chapter 4.1 --- Framework --- p.80Chapter 4.2 --- Tabu Assisted Heuristic Search --- p.81Chapter 4.2.1 --- A Tabu Assisted Heuristic Search Construct --- p.83Chapter 4.2.1.1 --- Search Space --- p.84Chapter 4.2.1.2 --- Initial Trial Solution --- p.85Chapter 4.2.1.3 --- Neighborhood Structure --- p.85Chapter 4.2.1.4 --- Local Search Procedure --- p.86Chapter 4.2.1.5 --- Form of Tabu Moves --- p.88Chapter 4.2.1.6 --- Addition of a Tabu Move --- p.88Chapter 4.2.1.7 --- Maximum Size of Tabu List --- p.89Chapter 4.2.1.8 --- Termination Criterion --- p.89Chapter 4.3 --- Hybrid Simulated Annealing Search --- p.90Chapter 4.3.1 --- A Hybrid Simulated Annealing Construct --- p.91Chapter 4.3.1.1 --- Random Selection of Immediate Neighbor --- p.92Chapter 4.3.1.2 --- Cooling Schedule --- p.93Chapter 4.3.1.3 --- Termination Criterion --- p.94Chapter 4.4 --- Hybrid Genetic Search Algorithm --- p.95Chapter 4.4.1 --- A Hybrid Genetic Search Construct --- p.99Chapter 4.4.1.1 --- Search Space --- p.99Chapter 4.4.1.2 --- Initial Population --- p.100Chapter 4.4.1.3 --- Selection --- p.104Chapter 4.4.1.4 --- Crossover --- p.105Chapter 4.4.1.5 --- Mutation --- p.106Chapter 4.4.1.6 --- New Population --- p.108Chapter 4.4.1.7 --- Termination Criterion --- p.109Chapter 4.5 --- Further Assessment --- p.109Chapter 4.6 --- Computational Study --- p.114Chapter 4.6.1 --- Parameter Selection --- p.115Chapter 4.6.1.1 --- Tabu Assisted Heuristic Search --- p.115Chapter 4.6.1.2 --- Hybrid Simulated Annealing Approach --- p.121Chapter 4.6.1.3 --- Hybrid Genetic Search Algorithm --- p.124Chapter 4.6.2 --- Expected Performance --- p.128Chapter 4.6.2.1 --- Tabu Assisted Heuristic Search --- p.128Chapter 4.6.2.2 --- Hybrid Simulated Annealing Approach --- p.138Chapter 4.6.2.3 --- Hybrid Genetic Search Algorithm --- p.146Chapter 4.6.2.4 --- Overall Comparison --- p.150Chapter 4.7 --- Summary --- p.153Chapter 5 --- A Special Case of the Median Problems --- p.156Chapter 5.1 --- Introduction --- p.157Chapter 5.2 --- Problem Formulation --- p.158Chapter 5.2.1 --- The r-Interdiction Covering Problem --- p.158Chapter 5.2.1.1 --- Problem Definition --- p.159Chapter 5.2.1.2 --- Mathematical Model --- p.160Chapter 5.2.2 --- The r-Interdiction Covering Problem with Fortification --- p.162Chapter 5.2.2.1 --- Problem Definition --- p.163Chapter 5.2.2.2 --- Mathematical Model --- p.164Chapter 5.2.3 --- The r-Interdiction Covering Problem with Fortification (Bilevel Formulation) --- p.167Chapter 5.2.3.1 --- Mathematical Model --- p.168Chapter 5.3 --- Theoretical Relationship --- p.170Chapter 5.4 --- Solution Methodologies --- p.172Chapter 5.5 --- Results and Discussion --- p.175Chapter 5.5.1 --- The r-Interdiction Covering Problem --- p.175Chapter 5.5.2 --- The r-Interdiction Covering Problem with Fortification --- p.178Chapter 5.5.3 --- The r-Interdiction Covering Problem with Fortification (Bilevel Formulation) --- p.182Chapter 5.6 --- Summary --- p.187Chapter 6 --- Conclusion --- p.189Chapter 6.1 --- Summary of Our Work --- p.189Chapter 6.2 --- Future Directions --- p.19