The Multiproduct Warehouse Location Problem: Applying a Decomposition Algorithm

Suggests that, in recent years, remarkable progress has been made in the development of the topological design of logistics networks, especially in the warehouse location problem. Extends the standard warehouse location problem to a generalization of multiproduct capacitated warehouse location problem, as opposed to differentiated variations of a single‐product warehouse location problem, where each warehouse has a given capacity for carrying each product. Presents an algorithm based on cross‐decomposition, to reduce the computational difficulty by incorporating Benders decomposition and Lagrangean relaxation. Computational results of this algorithm are encouraging.