A review of hierarchical facility location models

Abstract

In this study, we review the hierarchical facility location models. Although there have been a number of review papers on hierarchical facility problems, a comprehensive treatment of models has not been provided since the mid-80s. This review fills the gap in the literature. We first classify the hierarchical facility problems according to the features of systems studied, which are based on flow pattern, service availability at each level of the hierarchy, and spatial configuration of services in addition to the objectives to locate facilities. We then investigate the applications, mixed integer programming models, and solution methods presented for the problem. With an overview of the selected works, we consolidate the main results in the literature. Scope and purpose Hierarchical systems have to decide about the locations of their interacting facilities within a multiple layer configuration. Although literature on hierarchical location decisions has grown, a review of hierarchical location models has not been published since 1986–1987. In this review, we consolidate the selected material in the literature, including more than 70 studies dated 1986 or later.