The capacitated plant location problem with linear transportation costs is considered. Exact rules and heuristics are presented for opening or closing of facilities. A heuristic algorithm based on ADD/DROP strategies is proposed. Procedures are implemented with the help of lower and upper bounds using Lagrangean relaxation. Computational results are presented and comparisons with other algorithms are made.
capacitated plant location problem; ADD/DROP procedures; heuristic methods; Lagrangean relaxation