A Multi-Exchange Heuristic for a Production Location Planning Problem

Y. Guo
A. Lim
Brian RODRIGUES, Singapore Management University


In this work, we develop a multi-exchange heuristic based on an estimation improvement graph embedded in a simulated annealing to solve a problem arising in plant location planning where tariff exemptions apply. The method is shown to be effective in experiments since it provides good solutions for problems of realistic size. It is superior to CPLEX in terms of time, and is able to provide solutions for large test problems.