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Facility location and capacity acquisition: An integrated approach
Author(s) -
Verter Vedat,
Dincer M. Cemal
Publication year - 1995
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(199512)42:8<1141::aid-nav3220420803>3.0.co;2-b
Subject(s) - facility location problem , computer science , context (archaeology) , operations research , mathematical optimization , mathematics , paleontology , biology
The facility location and capacity acquisition decisions are intertwined, especially within the international context where capacity acquisition costs are location dependent. A review of the relevant literature however, reveals that the facility location and the capacity acquisition problems have been dealt with separately. Thus, an integrated approach for simultaneous optimization of these strategic decisions is presented. Analytical properties of the arising model are investigated and an algorithm for solving the problem is devised. Encouraging computational results are reported. © 1995 John Wiley & Sons, Inc.