A branch‐bound algorithm for the capacitated facilities location problem

This paper discusses a mixed integer programming method for solving the Facilities Location Problem with capacities on the facilities. The algorithm uses a Decomposition technique to solve the dual of the associated continuous problem in each branch‐bound iteration. The method was designed to produce the global optimum solution for problems with up to 100 facilities and 1,000 customers. Computational experience and a complete example are also presented in the appendix.