A Stable Algorithm for Solving the Multifacility Location Problem Involving Euclidean Distances

There is a rapidly growing interdisciplinary interest in the application of location models to real life problems. Unfortunately, the current methods used to solve the most popular minisum and minimax location problems are computationally inadequate. A more unified and numerically stable approach for solving these problems is proposed. Detailed analysis is done for the linearly constrained Euclidean distance minisum problem for facilities located in a plane. Preliminary computational experience suggests that this approach compares favourably with other methods.