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Network design: selection and design of links and facility location
Institution:1. Department of Management Sciences, College of Business and Economics, California State University, Fullerton, CA 92834, USA;2. Faculty of Business, McMaster University, Hamilton, Ont., Canada L8S-4M4;1. Department of Industrial and Systems Engineering, Wayne State University, Detroit, MI, 48202, United States;2. Canada Research Chair in Distribution Management, HEC Montréal, 3000, chemin de la Côte-Ste-Catherine, Montréal, Canada H3T 2A7;3. Desautels Faculty of Management, McGill University, 1001 Sherbrooke Street West, Montreal, Canada H3A 1G5;1. Department of Electrical and Electronics Engineering, Boğaziçi University, Istanbul 34342, Turkey;2. Department of Industrial Engineering, Boğaziçi University, Istanbul 34342, Turkey;1. Industrial Engineering & Operations Research, University of California, Berkeley, CA 94720, USA;2. Mathematical Sciences, IBM T. J. Watson Research Center, Yorktown Heights, NY 10598, USA;1. Universidad San Francisco de Quito USFQ, Colegio de Ciencias e Ingeniería, Instituto de Innovación en Productividad y Logística CATENA-USFQ, Diego de Robles y Vía Interocenica EC170901, Quito, Ecuador;2. UMR 5600 Environnement, Ville et Société, Institut Henri Fayol, Ecole des Mines de Saint-Etienne, 158 cours Fauriel, 42023 Saint-Etienne Cedex 2, France;1. Université Paris-Dauphine, LAMSADE, France;2. Universidade Federal Fluminense, Departamento de Engenharia de Produção, Brazil;3. Orange Labs R&D, Issy-Les-Moulineaux, France
Abstract:In this paper we introduce new network design problems. A network of potential links is given. Each link can be either constructed or not at a given cost. Also, each constructed link can be constructed either as a one-way or two-way link. The objective is to minimize the total construction and transportation costs. Two different transportation costs are considered: (i) traffic is generated between any pair of nodes and the transportation cost is the total cost for the users and (ii) demand for service is generated at each node and a facility is to be located on a node to satisfy the demand. The transportation cost in this case is the total cost for a round trip from the facility to each node and back. We will consider two options in regard to the links between nodes. They can either be two-way only, or mixed, with both two-way and one-way (in either direction) allowed. When these options are combined with the two objective functions, four basic problems are created. These problems are solved by a descent algorithm, simulated annealing, tabu search, and a genetic algorithm. Extensive computational results are presented.
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