Mathematical Programming Formulations of the Planar Facility Location Problem

Abstract

The facility location problem is the task of optimally placing a given number of facilities in a certain subset of the plane. In this thesis, we present various mathematical programming formulations of the planar facility location problem, where potential facility locations are not specified. We first consider mixed-integer programming formulations of the planar facility locations problems with squared Euclidean and rectangular distance metrics to solve this problem to provable optimality. We also investigate a heuristic approach to solving the problem by extending the $K$-means clustering algorithm and formulating the facility location problem as a variant of a semidefinite programming problem, leading to a relaxation algorithm. We present computational results for the mixed-integer formulations, as well as compare the objective values resulting from the relaxation algorithm and the modified $K$-means heuristic. In addition, we briefly discuss some of the practical issues related to the facility location model under the continuous customer distribution.