Fast bounding procedures for large instances of the Simple Plant Location Problem

Some new, simple and extremely fast bounding procedures are presented for large-scale instances of the Simple Plant Location Problem. The lower-bounding procedures are based on dual ascent. The fastest of them runs in O ( mn log m ) time, where m and n are the number of locations and clients, respectively. The upper-bounding procedures are based on iteratively dropping facilities, and the fastest of them runs in O ( m ( n + log m ) ) time. Extensive computational results show that, in practice, the procedures give very good bounds extremely quickly.

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