Primal-dual variable neighborhood search for the simple plant-location problem

Copyright @ 2007 INFORMSThe variable neighborhood search metaheuristic is applied to the primal simple plant-location problem and to a reduced dual obtained by exploiting the complementary slackness conditions. This leads to (i) heuristic resolution of (metric) instances with uniform fixed costs, up to n = 15,000 users, and m = n potential locations for facilities with an error not exceeding 0.04%; (ii) exact solution of such instances with up to m = n = 7,000; and (iii) exact solutions of instances with variable fixed costs and up to m = n = 15, 000.This work is supported by NSERC Grant 105574-02; NSERC Grant OGP205041; and partly by the Serbian Ministry of Science, Project 1583

Variations in the Flow Approach to CFCLP-TC for Multiobjective Supply Chain Design

We review the problem for the design of supply chains called Capacitated Fixed Cost Facility Location Problem with Transportation Choices (CFCLP-TC). The problem is based on a production network of two echelons with multiple plants, a set of potential distribution centers, and customers. The problem is formulated as an optimization model with two objective functions based on time and cost. This paper proposes three changes to the original model to compare the sets of efficient solutions and the computational time required to obtain them. The main contribution of this paper is to extend the existing literature by incorporating approaches for the supply of product to customers through multiple sources, the direct flow between plants and customers, without this necessarily implying removing the distribution centers, and the product flow between distribution centers. From these approaches, we generate mathematical programming models and propose to solve through the epsilon-constraint approach for generating Pareto fronts and thus compare each of these approaches with the original model. The models are implemented in GAMS and solved with CPLEX

Investment decisions and sensitivity analysis: NPV-consistency of rates of return

Investment decisions may be evaluated via several different metrics/criteria, which are functions of a vector of value drivers. The economic significance and the reliability of a metric depend on its compatibility with the Net Present Value (NPV). Traditionally, a metric is said to be NPV-consistent if it is coherent with NPV in signalling value creation. This paper makes use of Sensitivity Analysis (SA) for measuring coherence between rates of return and NPV. In particular, it introduces a new, stronger definition of NPV-consistency that takes into account the influence of value drivers on the metric output. A metric is strongly NPV-consistent if it signals value creation and the ranking of the value drivers in terms of impact on the output is the same as that provided by the NPV. The degree of (in)coherence is calculated with Spearman's (1904) correlation coefficient and Iman and Conover's (1987) top-down coefficient. We focus on the class of AIRRs (Magni 2010, 2013) and show that the average Return On Investment (ROI) enjoys strong NPV-consistency under several (possibly all) methods of Sensitivity Analysis

GIS and Location Theory Based Bioenergy Systems Planning

This research is concerned with bioenergy systems planning and optimization modelling in the context of locating biomass power plants and allocating available biomass feedstock to the active plants. Bioenergy, a promising renewable energy resource, has potentially significant benefits to climate change, global warming, and alternative energy supplies. As modern bioenergy applications in power production have the ability to generate cleaner electricity and reduce Green House Gas (GHG) emissions compared with traditional fossil fuels, many researchers have proposed various approaches to obtain competitive power generation prices from biomass in different ways. However, the highly dispersed geographical distribution of biomass is a big challenge for regional bioenergy systems planning. This thesis introduces an integrated methodology combining Geographic Information Systems (GIS) and discrete location theories for biomass availability assessment, biomass power plant candidate selection, and location-allocation of power plants and biomass supplies. Firstly, a well known discrete location model – the p-Median Problem (PMP) model is employed to minimize the weighted transportation costs of delivering all collectable biomass to active power plants. Then, a p-Uncapacitated Facility Location Problem (p-UFLP) model for minimizing the Levelized Unit Costs of Energy (LUCE) is proposed and genetic algorithms (GAs) for solving these optimization problems are investigated. To find the most suitable sites for constructing biomass power plants, the Analytic Hierarchy Process (AHP) and GIS based suitability analysis are employed subject to economical, societal, public health, and environmental constraints and factors. These methods and models are aimed at evaluating available biomass, optimally locating biomass power plants and distributing all agricultural biomass to the active power plants. The significance of this dissertation is that a fully comprehensive approach mixed with the applications of GIS, spatial analysis techniques, an AHP method and discrete location theories has been developed to address regional bioenergy systems planning, involving agricultural biomass potential estimation, power plants siting, and facility locations and supplies allocation scenarios. With the availability of the spatial and statistical data, these models are capable of evaluating and identifying electric power generation from renewable bioenergy on the regional scale optimally. It thus provides the essential information to decision makers in bioenergy planning and renewable bioenergy management. An application sited in the Region of Waterloo, Ontario Canada is presented to demonstrate the analysis and modelling process