Distribution systems design with role dependent objectives

The ordered capacitated facility location problem

“…In this problem, the number of facilities to be located is not given in advance but it is part of the decision making process and, in addition, each supply facility has a setup cost to avoid free opening. This is an important difference to the capacitated DOMP where the number of new facilities was fixed a priori, see Kalcsics et al (2008). The objective function of the OCFL takes into account the transportation and setup costs, where now both costs are sorted in non-decreasing order and multiplied by two vectors of correction factors λ and μ, respectively.…”

A comparative study of formulations and solution methods for the discrete ordered p-median problem

“…Given a vector of weights, this function consists in an ordered weighted average of the allocation costs, namely it sorts these costs in non-decreasing sequence and then it performs the scalar product of this so obtained sorted cost vector and the given vector of weights. This objective function has been widely applied in the field of location analysis and distribution models (Marín et al [10], Kalcsics et al [9] and Puerto et al [17,18]). In addition, it has the potential to yield new models for order statistics embedded within mathematical programming formulations; thus enlarging the applications of optimization tools to the resolution of statistical problems in data analysis.…”

The ordered median tree of hubs location problem

“…Recently, another feature, namely weighted averaging objective functions, has also been incorporated to the analysis of HLPs (Puerto et al 2011;Ramos 2012;Puerto et al 2013Puerto et al , 2016. It has been recognized as a powerful tool from a modeling point of view because it allows to distinguish the roles played by the different entities participating in a hub-and-spoke network inducing new type of distribution patterns, see Rodríguez-Martín and Salazar-González (2008), Fonseca et al (2010), Kalcsics et al (2010a) and Kalcsics et al (2010b). Each one of the components of any origin-destination delivery path gives rise to a cost that is weighted by different compensation factors depending on the role of the entity that supports the cost.…”