D. Ruiz-Hernandez, J. M. PINAR PÉREZ
This work addresses the problem of locational complexity and its inclusion in network design problems. We define “locational complexity” as the intricated set of interactions and decisions that emanates from a company's territorial strategy. The rationale is that an ever-growing number of facilities and a constant expansion into new markets tends to introduce hidden costs that hinder the capacity of the company to generate profits. Earlier work of these authors, reveals that standard location problems tend to generate oversized networks, inducing what other authors have called “an addition to growth”.
Locational complexity is introduced in a standard K-Median formulation by using an entropy-based measure for supply chain structural complexity. This results in a highly combinatorial and nonlinear problem referred to as the K-MedianPlex problem. A maximum-ascent greedy heuristic is proposed for solving large instances of the problem.
Keywords: Locational complexity, p-Median, Network Design,
Scheduled
GT01 Location IV. Network Design
June 7, 2022 6:40 PM
A15
