The Induced Facility Location Problem with Upgrading

Resumen

We consider a new model for facility location problems on graphs where two kinds of weights are associated with each edge, namely allocation and derived costs. The allocation cost is related to the cost of assigning the demand points to the facilities. The derived cost represents any cost derived of the allocation of the demand points. Each customer will be assigned to the facility providing the lowest allocation cost. Moreover, a budget is given to reduce the derived costs. The aim is to simultaneously find the location of facilities and the distribution of a budget in the edges of the graph to reduce the derived costs associated to the allocation of the demand nodes to the facilities, in order to minimize the upgraded derived costs.