A hybrid matheuristic for the Two-Stage Capacitated Facility Location problem

Abstract

In the class of supply chain problems, the Two-Stage Capacitated Facility Location (TSCFL) is defined by optimal locations for installing factories and warehouses to meet the demand of customers. The problem aims to minimize operating costs: opening facilities and the flow of products from factories to customers, passing through warehouses, meeting the capacity constraints of factories and warehouses and customers’ demand. To solve this problem, a hybridization of Clustering Search (CS), Adaptive Large Neighborhood Search (ALNS) and Local Branching (LB) is proposed. This hybridization is a new and interesting approach which has found high quality solutions in low computational time. To show that, computational experiments were performed using benchmark instances. The results showed that the proposed method outperforms the current state-of-art for the TSCFL for 40 out of 50 instances.