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      The vendor location problem

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      Author
      Çınar, Y.
      Yaman, H.
      Date
      2011
      Journal Title
      Computers & Operations Research
      Print ISSN
      0305-0548
      Electronic ISSN
      1873-765X
      Publisher
      Elsevier
      Volume
      38
      Issue
      12
      Pages
      1678 - 1695
      Language
      English
      Type
      Article
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      Please cite this item using this persistent URL
      http://hdl.handle.net/11693/21710
      Abstract
      The vendor location problem is the problem of locating a given number of vendors and determining the number of vehicles and the service zones necessary for each vendor to achieve at least a given profit. We consider two versions of the problem with different objectives: maximizing the total profit and maximizing the demand covered. The demand and profit generated by a demand point are functions of the distance to the vendor. We propose integer programming models for both versions of the vendor location problem. We then prove that both are strongly NP-hard and we derive several families of valid inequalities to strengthen our formulations. We report the outcomes of a computational study where we investigate the effect of valid inequalities in reducing the duality gaps and the solution times for the vendor location problem.
      Published as
      http://dx.doi.org/10.1016/j.cor.2011.02.011
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