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A stopping rule while searching for optimal solution of facility-location
Dalarna University, School of Technology and Business Studies, Statistics.ORCID iD: 0000-0003-2317-9157
Dalarna University, School of Technology and Business Studies, Statistics.ORCID iD: 0000-0003-2970-9622
2013 (English)Report (Other academic)
Abstract [en]

Solutions to combinatorial optimization, such as p-median problems of locating facilities, frequently rely on heuristics to minimize the objective function. The minimum is sought iteratively and a criterion is needed to decide when the procedure (almost) attains it. However, pre-setting the number of iterations dominates in OR applications, which implies that the quality of the solution cannot be ascertained. A small branch of the literature suggests using statistical principles to estimate the minimum and use the estimate for either stopping or evaluating the quality of the solution. In this paper we use test-problems taken from Baesley's OR-library and apply Simulated Annealing on these p-median problems. We do this for the purpose of comparing suggested methods of minimum estimation and, eventually, provide a recommendation for practioners. An illustration ends the paper being a problem of locating some 70 distribution centers of the Swedish Post in a region.

Place, publisher, year, edition, pages
Borlänge: Högskolan Dalarna , 2013.
Working papers in transport, tourism, information technology and microdata analysis, ISSN 1650-5581 ; 2013:20
Keyword [en]
p-median problem, Simulated Annealing, discrete optimization, extreme value theory
National Category
Economic Geography
Research subject
Komplexa system - mikrodataanalys
URN: urn:nbn:se:du-12705OAI: diva2:636409
26th European Conference on Operational Research
Swedish Retail and Wholesale Development Council
Available from: 2013-07-09 Created: 2013-07-09 Last updated: 2015-05-07Bibliographically approved

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