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Facility Location Problems with Equilibrium Constraints: Models and Algorithms

Author: HuangYiZuo
Tutor: ZuoLiXin
School: Tsinghua University
Course: Transportation Planning and Management
Keywords: Location Balance constraints Variational inequalities Layer model Genetic Algorithms
CLC: F224
Type: Master's thesis
Year: 2005
Downloads: 152
Quote: 0
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Abstract


We assume that the market exists in certain production with the manufacturer of a product, a number of retailers and the consumer market, the manufacturers to produce the product will be sold by the retailer to the consumer market. When a large production company decided to produce and sell the product, it is the first thing to do is to choose the location of the production plant. In this thesis, the problem of location problem under equilibrium constraints, the balance constraints described three types of decision makers in the supply chain: the behavior of competition between manufacturers, retailers and consumer markets. This paper established a two-tier model to solve this type of site, it can help the large-scale production enterprises to maximize their own interests through the site. The upper model is a mixed integer programming model, its objective function is to maximize the interests of the producers, it can help the manufacturers to choose the location of the production plant. Selected the location of a production plant, each plant seen as a manufacturer, will generate competition between them and market the original manufacturer, at the same time, retailers in the market in order to make their own interests to the maximum also have a mutual competition, the result of competition throughout the supply chain to achieve a balanced state; use of the lower model variational inequalities establish a supply chain network equilibrium model, it can describe the state of the balance of the supply chain, decided to produce supplier the price and quantity of the product sold to retailers. In order to make the use of the model range more widely, we modeled a general way, different according to the objectives of the production enterprises, two alternative models for the upper model, production enterprises to make investment profits the largest one is to make the largest production enterprises ROI; provides two alternative supply chain network equilibrium model, depending on the market demand, a supply chain network equilibrium model is determined by the market demand, one is market demand for random supply chain network equilibrium model. In terms of the solution of the model, the paper first introduces two methods can solve the lower model, a modified projection method, a variational inequality problem into a nonlinear complementarity problem, and then use the Fisher equation this nonlinear complementarity problem into an unconstrained optimization problems, and finally with the quasi-Newton method for solving, in this paper, we will compare the 10 examples of these two solutions to the computation time, the number of iterations and convergence conditions. Then, we design a projection method based on genetic algorithms and correction heuristic algorithm for the model solution. Finally, a numerical example is calculated using the heuristic algorithm.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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