Applying Lagrangian relaxation to the resolution of two‐stage location problems

A family of two‐stage location problems is considered. These problems involve a systemproviding a choice of depots andyor plants, each with an associated location cost, and a setof demand points which must be supplied, in such a way that the total cost is minimized. Byusing Lagrangian relaxation, lower bounds and heuristic solutions are obtained for two kindsof formulation involving two or three indexes for each transportation variable. The goodnessof both formulations is compared by means of a computational study, and the results forseveral instances are presented.

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