A heuristic approach to handle capacitated facility location problem evaluated using clustering internal evaluation

Abstract

One of the problems in dealing with capacitated facility location problem (CFLP) is occurred because of the difference between the capacity numbers of facilities and the number of customers that needs to be served. A facility with small capacity may result in uncovered customers. These customers need to be re-allocated to another facility that still has available capacity. Therefore, an approach is proposed to handle CFLP by using k-means clustering algorithm to handle customers’ allocation. And then, if customers’ re-allocation is needed, is decided by the overall average distance between customers and the facilities. This new approach is benchmarked to the existing approach by Liao and Guo which also use k-means clustering algorithm as a base idea to decide the facilities location and customers’ allocation. Both of these approaches are benchmarked by using three clustering evaluation methods with connectedness, compactness, and separations factors.