Problem Formulation:

This is a VENDER LOCATION PROBLEM to locate a given number of vendors

and determining the number of vehicles and the service zones necessary for each
vendor to achieve a given profit.The profit function is modeled as PM0.Also,the
total demand served is modeled as CM0.Though it was found out,that adding some
further constraints brought about the same result but with different time taken.Our
motive is to compare the timings taken by PM0-PM5 and CM0-CMS and a new
method termed as Benders decomposition method to solve the same problem but
with different parameters min,kmax and p.

Parameters:
I : set of demand points.
J : set of possible location for vendors.
Ji: For i
I,it is the set of vendors that can serve i.
Ij: For j
J,it is the set of demand points that can be served by vendor at
location j.
qij: demand of point i served by vendor at location j.
ij: profit of demand point i served by vendor at location j.
fj: fixed cost of the vendor office located at j
J.
vj: fixed cost of a vehicle for a vendor located at j
J.
min: minimum profit a vendor should achieve.
k: maximum number of vehicles that a vendor at location j can have.
p: number of vendors to be located.
: capacity of a vehicle.

Variables:
xijk:1, if demand point i is assigned to vehicle k of vendor j; 0 otherwise
zjk: 1, if vendor j uses vehicle k; 0 otherwise
yj:1, if a vendor is located at location j; 0 otherwise
Using the above notations, the vendor location problem can be
mathematically stated as:
Maximize:

  ijxijk   jzjk  jyj
 
Subject to (PM0 Constraints):

  ijk 1


  

 j = p

 

 ijk yj


    

  ijijk  zjk

     

  ijijk  !jzjk + (min + fj )yj

   "

 jjk # yj

   $

xjj0 = zj0    %

xjj0 = yj    &
xijk {0,1}


      '

zjk {0,1}

     

yj {0,1}

   

The objective function is the total profit.

Benders' Decomposition:
It can be proved that if we relax the yj variable to be
continuous, the optimal solution to the relaxed problem is still
optimal to the original problem. This allows us to solve the
relaxed problem using Benders' Decomposition.

[SP:] Minimize:
 jyj
Subject to:

 ()

 j = p
yj  ijk

A0*+,-  ()
   ;Bij*+,-  ()

(min + fj )yj  !jzjk     ijxijk

 Cj*+,-  ()
yj #  jjk

 Dj*+,-  ()

yj = xjj0

 Ej*+,-  ()"

-yj -1

 Fj*+,-  ()$

Let A0 ,Bij ,Cj ,Dj ,Ej and Fj be the dual variables for constraint sets
SP2,SP3,SP4,SP5,SP6, and SP7 respectively. The the dual of [SP] can be
written as:
[DSP:] Maximize:
pA0 +
   ijkBij.   jzikCj  /    ijxijkCj
 1()
.   jjkDj .  jj0Ej  0Fj

Subject to:
A0 .  0Bij (min + fj )Cj + Dj + Ej Fj fj    1()

[MP:] Minimize

  ijijk .   jzjk  2)
Subject to:
  ijk 1


  2)

  ijijk  zjk

     2)

xjj0 = zj0    2)

xijk {0,1}
zjk {0,1}


      2)
     2)"

Optimality Cut:
pA0h +
   ijkBijh.   jzikCjh
 /    ijxijkCjh .   jjk Djh .  jj0Ejh  0Fjh
Feasibility Cut:
0 pA0h +
   ijkBijh.   jzikCjh
 /    ijxijkCjh .   jjk Djh .  jj0Ejh  0Fjh
Additional Constraints:
Let j
J and j=max iIj
Ijij /qij.Then:
 zjk 789:;<
Ayj
=>?@

 

 BCDE/ ijk  zjk

 

Let i
Ij be such that qij  /2,li.Define Cij ={l
Ij:qij + qlj > }.Then:

      
xijk . F ljk  zjk
 GHIBCJCDK ij0 # 0

   "

 GHIBCD*KLMNN-/O ij0  zj0

   $

xij0. GHIBCJCPDKLMNN lj0  zj0   GHIB C 

ij=1- ijk

QLC


 %


    &

  ijij +  !jzjk + (min + fj )yj   ij    '

ij {0,1}


    

zjk yj

     

The constraints that the other PMs use :

PM1:labels (2)-(13).
PM2: labels (2)-(18).
PM3: labels (2)-(5),(7)-(21).
PM4: labels (2)-(5),(7)-(22).
PM5: labels (2)-(13),(19)-(22).

Coverage VLP is defined as:

Maximize:

  ijxijk 
This is the total demand served.The Objective function of CMS is this.
The constraints that the CMs use :
CM0:labels (2)-(12).
CM1:labels (2)-(13).
CM2: labels (2)-(18).
CM3: labels (2)-(5),(7)-(21).
CM4: labels (2)-(5),(7)-(22).
CM5: labels (2)-(13),(19)-(22).

TYPE-A(PM'S)
rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
832.8
1006.8
1053.3
1094.2
1152.7
1160.2
1070.6
1071.6
1071.6

PM0
231.81
866.67
102.95
383.47
586.41
1933.63
197.1
334.47
0.35%

PM1
231.17
648.04
76.75
181.42
2015.69
578.24
311.77
393.21
2017.7

PM2
864.26
396.4
55.96
315.48
200.73
150.51
106.09
406.63
1285.23

PM3
372.92
392.16
92.13
145.8
135.69
184.02
362.31
226.2
1862.68

PM4
255.94
423.74
50
394.68
981.78
198.35
231.59
300.53
1203.38

PM5
582.7
974.88
64.5
267.07
1990.93
0.35%
281.56
518.84
0.09%

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

832.8
1006.8
1053.3
1094.2
1152.7
1160.2
1070.6
1070.6
1068.6

117.89
574.87
105.14
346.56
1910.19
2699.08
355.28
0.05%
0.28%

721.3
438.71
136.49
178.48
1080.24
1155.32
553.77
2127.34
0.05%

878.77
871.78
43.59
163.32
132.21
163.74
404.21
2044.95
3231.46

263.35
3024.4
31.63
192.53
171.88
129.31
211.45
2190.45
0.05%

117.29
391.19
134.93
255.12
164.36
452.79
262.42
1949.31
0.05%

211.23
1045.04
81.49
321.82
746.59
1263.48
389.27
1440.67
0.40%

150
150
150
150
150

6
8
10
6
8

4
4
4
6
6

832.8
1006.8
1053.3
1074.7
1116.7

298.63
2081.65
96.49
906.76
716.05

361.82
923.65
93.16
626.46
3568.37

224.27
2404.57
28.85
270.02
364.3

1404.31
746.74
31.92
218.4
1093.62

132.46
405.53
255.06
838.47
296.8

237.05
1563.18
317.62
568.1
0.18%

TYPE-B(PM'S)
rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
806.06
974.17
1016.95
1057.7
1113.18
1119.65
1031.5
1035.34
1035.34

PM0
2054.67
752.46
489.11
1001.2
405.46
1196.31
241.02
644.12
1508.74

PM1
568.97
943.86
136.41
918.19
0.10%
0.22%
288.26
438.64
1068.37

PM2
0.01%
1410.31
38.42
190.13
269.61
195.37
343.24
335.08
1050.31

PM3
468.53
1191.43
33.98
235.88
228.15
170.32
369.53
198.64
702.04

PM4
212.36
298.39
64.02
199.34
239
291.74
693.3
266.27
1062.99

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

806.06
974.17
1016.95
1057.7
1112.78
1119.25
1024.84
1030.18
1031.64

528.09
756.26
69.14
221.57
2156.58
2256.34
1728.53
0.05%
0.16%

183.35
1303.02
80.4
958.6
898.8
588.83
2199.59
1861.42
0.06%

249.49
705.24
24.54
180.74
143.78
413.67
2465.81
1802.15
2516.63

400.56
1398.03
33.96
422.61
202.54
256.32
2311.64
2736.52
0.04%

908.23
943.78
53.15
311.44
271.93
367.81
2204.95
0.01%
0.09%

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

806.06
974.17
1016.95
1042.42
1079.29
1085.86

1039.29
592.74
66.65
651.88
2124.69
1267.99

194.72
219.29
83.27
386.13
1275.22
1925.7

1495.65
482.48
30.1
278.46
174.21
111.1

831.16
0.14%
32.75
233.64
206.49
0.23%

169.15
722.26
132.34
539.67
242.43
314.05

TYPE-C(PMS)
rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
836.254**
991.276**
1006.57**
1150.58**
1209.62**
1209.62**
1236.04**
1237.64**
1237.64**

PM0
4.76%
2.11%
4.48%
6.77%
3.69%
5.59%
8.21%
8.93%
9.28%

PM1
4.71%
2.11%
2.85%
5.24%
3.14%
5.14%
10.03%
8.42%
10.40%

PM2
6.09%
3.04%
8.23%
6.38%
7.06%
7.23%
8.25%
10.43%
12.95%

PM3
6.09%
2.26%
3.34%
6.22%
5.56%
7.51%
9.29%
9.75%
12.56%

PM4
5.41%
2.28%
7.21%
5.99%
5.70%
7.55%
8.36%
10.75%
10.56%

PM5
5.24%
1.92%
7.31%
4.40%
3.87%
5.46%
6.78%
8.71%
8.98%

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

836.254**
991.276**
1006.57**
1150.58**
1209.62**
1209.62**
1236.04**
1237.64**
1237.64**

5.17%
2.11%
3.89%
5.28%
4.29%
5.33%
7.81%
7.32%
9.71%

5.00%
1.86%
2.86%
7.13%
3.13%
5.41%
6.98%
7.94%
9.88%

5.10%
2.11%
3.19%
6.38%
4.85%
7.12%
8.67%
9.77%
11.33%

5.47%
2.11%
6.72%
6.80%
6.42%
6.71%
10.21%
12.72%
10.20%

5.29%
2.23%
6.06%
7.31%
5.10%
6.72%
8.06%
8.38%
9.37%

4.82%
2.08%
2.74%
7.82%
3.03%
5.85%
7.14%
7.68%
8.62%

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

836.254**
991.276**
1006.57**
1146.91**
1202.03**
1202.03**

4.49%
2.00%
2.14%
4.74%
3.68%
5.65%

4.69%
1.58%
2.07%
5.79%
4.84%
5.10%

5.69%
2.38%
4.56%
6.10%
5.76%
7.05%

5.74%
2.87%
6.01%
6.29%
6.49%
6.41%

5.04%
2.87%
2.94%
6.46%
4.64%
5.79%

4.52%
2.05%
2.86%
5.17%
3.73%
6.79%

TYPE-A(CM'S)
rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
1413
1790
2095
2042
2450
2677
2508
2739
2739

CM0
1009.28
296.03
26.59
132.95
82.14
7.17
1976.13
11.58
30.78

CM1
215.86
416.98
20.97
96.15
68.89
6.71
1470.07
8.33
40.25

CM2
533.75
0.06%
34.99
243.08
90.74
5.33
1943.97
11.07
11.57

CM3
290.79
477.45
42.76
200.2
124.92
4.15
1365.26
33.83
6.11

CM4
80.39
205.88
13.52
78.24
70.23
4.6
106.11
9.03
5.72

CM5
123.81
418.6
15.84
104.7
101.85
11.21
2035.13
42.32
11.72

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

1413
1790
2095
2042
2446
2677
2495
2739
2739

190.43
0.06%
40.38
224.77
154.88
9.13
3162.36
222.83
--------

164.48
1101.16
23.76
121.19
74.8
7.33
1826.15
2.32%
1556.88

809.27
117.1
20.16
235.88
178.18
5.37
0.48%
557.38
19.6

699.55
350.91
29.5
161.96
95.87
3.81
3058.95
436.56
129.75

155.89
318.02
38.22
151.38
71.36
5.32
412.42
339.12
9.7

92.79
105.47
18.87
115.69
171.16
13.49
1386.18
2209.68
0.92%

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

1413
1790
2095
2032
2382
2502

917.04
97.61
33.61
124.32
932.18
491.1

626.03
386.55
48.28
275.35
0.46%
633.07

1049.3
279.75
27.26
122
1131.58
273.29

188.78
353.37
31.08
89.51
1913.34
260.04

56.47
359.23
20.95
170
2411.6
1665.27

112.22
209.28
23.3
245.39
2687.6
1.32%

TYPE-B(CM'S)
rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
1413
1790
2095
2042
2450
2677
2508
2739
2739

CM0
189.09
200.41
18.91
119.4
65.28
5.84
1415.57
17.32
5.54

CM1
182.19
281.74
24.2
172.5
86.1
6.22
3059.68
66.66
28.15

CM2
242.11
121.19
29.17
110.54
104.82
4.53
2809.69
21.92
6.01

CM3
177.94
359.71
22.2
87.97
81.88
6.44
2133.89
9.75
8.49

CM4
184.63
92.1
15.87
58.01
154.95
6.5
87.63
3.69
5.21

CM5
76.88
77.07
14.86
80.82
53.3
9.58
352.76
80.41
41.55

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

1413
1790
2095
2042
2446
2677
2495
2739
2739

300.92
773.89
35.85
339.59
119.3
8.26
0.28%
760.69
530.72

290.05
255.74
30.57
86.9
95.53
8.2
0.40%
860.94
1793.21

192.65
444.2
37.53
135.54
134.76
3.71
3073.62
0.48%
78.45

159.38
457.37
25.85
154.83
90.08
5.34
0.34%
0.88%
25.64

164.74
117.57
15.09
59.44
59.1
4.48
1780.31
41.92
204.68

88.9
152.79
16.8
118.2
110.49
9.84
1390.93
0.48%
136.2

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

1413
1790
2095
2032
2366
2471

670.95
857.31
28.39
245.8
467.84
1894.22

255.64
489.39
23.94
320.87
1195.58
1429.83

301.58
606.02
18.2
98.28
549.29
511.38

143.41
77.3
22.84
102.13
1242.56
214.81

375.47
217.21
14.63
134.77
789.96
435.2

196.39
111.31
17.76
85.88
643.28
1007.03

TYPE-C(CMS)
rhomin kmax
50
6
50
8
50 10
50
6
50
8
50 10
50
6
50
8
50 10

p
4
4
4
6
6
6
8
8
8

Objective
1414.73**
1757.77
1846.66
2067.32
2263.64
2274.94
2446.42
2462.37
2462.37

CM0
1.30%
70.67
1.69
1503.8
48.33
6.84
36.78
44.32
56.37

CM1
1.27%
108.4
3.15
886.22
37.91
3.86
14.56
34.54
37.94

CM2
1.41%
54.33
4.9
1274.08
51.15
11.16
56.37
20.67
26.55

CM3
1.57%
95.55
4.33
2945.35
57.19
18.52
81.37
26.88
39.82

CM4
1.30%
55.96
4.97
1814.83
59.59
8.73
44.84
25.74
26.19

CM5
1.41%
50.18
3.02
1833.5
64
4.65
46.44
59.3
53.67

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

1414.73**
1757.77
1846.66
2067.32
2259.97
2274.13
2440.29
2449**
2449**

1.24%
146.23
3.01
1324.41
288.48
20.71
297
0.11%
0.13%

1.38%
212.24
3.61
1401.11
468.45
47.93
294.64
0.11%
0.21%

1.45%
662.03
3.24
1222.19
0.13%
22.99
1071.84
0.10%
0.25%

1.28%
215.08
8.4
1465.54
1617.46
86.96
570.63
0.09%
0.28%

1.48%
103.4
4.87
1435.16
1297.75
48.78
519.91
0.30%
0.27%

1.29%
83.37
1.85
1660.45
216.88
16.92
270.26
0.14%
0.38%

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

1414.73**
1757.77
1846.66
2067.32
2241.2
2252.89

1.52%
44.95
8.28
2178.44
0.67%
391.98

1.29%
137.89
5.94
2870.11
0.11%
312.43

1.33%
109.69
4.12
2170.64
0.11%
172.88

1.40%
66.52
4.65
0.29%
0.28%
52.5

1.42%
115.75
5.39
3195.75
2130.7
65.21

1.36%
137.55
4.2
1083.22
0.12%
365.43

TYPE-D(CMS)

rhomin kmax
50
6
50
8
50
10
50
6
50
8
50
10
50
6
50
8
50
10

p
4
4
4
6
6
6
8
8
8

Objective
1414.73**
1757.77
1846.66
2067.32
2263.64
2274.73
2446.42
2462.37
2462.37

CM0
1.33%
50.73
2.13
1096.44
31.04
7.34
25.82
49.87
40.82

CM1
1.50%
90.45
2.61
857.54
25.96
6.82
24.69
56
85.07

CM2
1.37%
95.32
3.02
599.36
45.44
8.51
23.11
71.08
79.19

CM3
1.35%
212.63
4.18
2402.83
62.6
14.15
79.2
87.27
116.39

CM4
1.44%
240.19
4.42
3188.07
80.46
25.03
59.21
45.72
50.92

CM5
1.32%
62.83
2.18
943.97
44.9
6.35
36.2
58.36
50.98

100
100
100
100
100
100
100
100
100

6
8
10
6
8
10
6
8
10

4
4
4
6
6
6
8
8
8

1414.73**
1757.77
1846.66
2067.32
2259.97
2274.13
2440.29
2449
2449**

1.33%
108.15
2.25
926.87
202.66
10.94
286.21
0.17%
0.18%

1.41%
48.56
2.74
959.3
556.76
12.77
248.52
0.03%
0.18%

1.28%
105.35
3.53
1593.55
305.24
30.5
1025.17
2800.84
0.15%

1.34%
220.63
6.7
2641.56
1435
30.39
124.81
0.28%
0.28%

1.43%
268.65
3.42
0.34%
947.02
28.38
758.31
0.23%
0.34%

1.39%
44.61
2.49
1965.59
986.34
13.26
147.64
0.15%
0.11%

150
150
150
150
150
150

6
8
10
6
8
10

4
4
4
6
6
6

1414.73**
1757.77
1846.66
2067.32
2237.82
2240.91**

1.31%
147.37
4.23
3332.14
0.41%
0.42%

1.50%
119.68
6.03
1347.27
2131.4
0.54%

1.35%
92.76
6.02
1652.93
0.41%
0.30%

1.43%
130.22
6.64
0.05%
3454.19
0.12%

1.41%
58.31
4.65
2928.02
0.56%
0.38%

1.50%
97.79
3.64
1337.4
0.03%
0.30%

Reference:The Vendor Location Problem,Yuce Cinar and Hande

Yaman
Journal homepage:www.elsevier.com/locate/caor

Future Work:Complete computations for Type-D of PMS and to note

down the timings taken by benders decomposition method.