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| Title: | Facility location with economies of scale and congestion |
| Authors: | Lu, Da |
| Approved Date: | 1-Sep-2010 |
| Date Submitted: | 2010 |
| Abstract: | Most literature on facility location assumes a fixed set-up cost and a linear variable cost. However, as production volume increases, cost savings are achieved through economies of scale, and then when production exceeds a certain capacity level, congestion occurs and costs start to increase significantly. This leads to an S-shaped cost function that makes the location-allocation decisions challenging. This thesis presents a nonlinear mixed integer programming formulation for the facility location problem with economies of scale and congestion and proposes a Lagrangian solution approach. Testing on a variety of functions and cost settings reveals the efficiency of the proposed approach in finding solutions that are within an average gap of 3.79% from optimal. |
| Program: | Management Sciences |
| Department: | Management Sciences |
| Degree: | Master of Applied Science |
| URI: | http://hdl.handle.net/10012/5469 |
| Appears in Collections: | Faculty of Engineering Theses and Dissertations
Electronic Theses and Dissertations (UW)
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