Abstract
Under study is the bilevel nonlinear facility location and mill pricing problem. It is shown that the problem belongs to the class Poly-APX. We present the two hybrid algorithms that are based on local search: variable neighborhood descent (VND-metaheuristics) and genetic local search. These algorithms are compared with available algorithms and CPLEX software and show their competitiveness. Computational experiments are conducted on the instances from the benchmark library “Discrete Location Problems.” The results show high efficiency of the developed methods and possibility of solving the problems of large dimension.
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