(A) cross decomposition algorithm for the intermediate warehouse location problem

Abstract

This thesis considers the intermediate warehouse location problem in a two stage distribution system where commodities are delivered from the given set of capacitated factories to customers via intermediate warehouses, In order to determine the subset of warehouses to open which minimizes the total distribution costs including the fixed costs associated with opening warehouses , the cross decomposition method for mixed integer programming , recently developed by Tony J.Van Roy , is used. The method unifies Benders decomposition and Lagrangean relaxation into a single framework which involves successive solutions to a transshipment problem and an intermediate warehouse location problem with capacity-unlimited factories. Limited computational results for several examples are provided along with some remarks.