Optimal Design of Multiactivity Multifacility Systems by Branch and Bound

This paper presents a model for designing multiactivity, multifacility systems. Given the maximum number of facilities and their possible locations, the problem is to determine which facilities to include in the system and which activities should be carried on at each facility in order to minimize the cost of the system. A branch-and-bound algorithm for solving the problem is given; the subproblems solved by the algorithm are tractable integer linear programs. The model can be used in the design of such diverse systems as neighborhood health centers, schools, and multiproduct inventory distribution systems.