A Tabu Search Heuristic Procedure for the Capacitated Facility Location Problem

A tabu search heuristic procedure for the capacitated facility location problem is developed, implemented and computationally tested. The heuristic procedure uses both short term and long term memories to perform the main search process as well as the diversification and intensification functions. Visited solutions are stored in a primogenitary linked quad tree as a long term memory. The recent iteration at which a facility changed its status is stored for each facility site as a short memory. Lower bounds on the decreases of total cost are used to measure the attractiveness of switching the status of facilities and are used to select a move in the main search process. A specialized transportation algorithm is developed and employed to exploit the problem structure in solving transportation problems. The performance of the heuristic procedure is tested through computational experiments using test problems from the literature and new test problems randomly generated. It found optimal solutions for a most all test problems used. As compared to the Lagrangean and the surrogate/Lagrangean heuristic methods, the tabu search heuristic procedure found much better solutions using much less CPU time.