Location Model of Risk Pooling with Variable Construction Costs Based on Particle Swarm Optimization Algorithm

摘要

Based on variable costs of construction, the present authors construct a new location problem of risk pooling incorporating variable DC Construction, transportation cost, working inventory and safety stock inventory costs at the distribution centers. The authors formulate this problem as a square nonlinear 0-1 integer-programming model which is to determine which retailer should serve as distribution centers and how to allocate the other retailers to the distribution centers. Applying the particle swarM optimization to several computational instances, the present authors find the suboptimum solution of the model.