Capacitated Facility Location Models and Approach with Time-varying Demand
CHEN Zhong-wu1,ZHANG Zong-xiang1,2,QIN Jing-bo3
1.School of Management, Huazhong University of Science Technology, Wuhan 430074, China; 2.School of Management, Wuhan Institute of Technology, Wuhan 430205, China; 3.School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China
Abstract The demand for a given product or service is usually varying when time changes in dailylife, it might be necessary to relocate the facilities to meet the upcoming changes. For investment restrictions, classical facility location decisions often remain unchanged regardless of demand and costs may change in future. This can not respond flexibly to varying demand. This paper studies capacitated facility location problems in time varying demand environments, in order to meet the changing of customer demand based on the discrete and limited period of time. We present a relocation model under the assumption of different demand structures in order to minimize total investment. We also solve this model with Lagrange heuristic algorithm. Effectiveness of the algorithm is verified by the experimental data.