Supply facility and input/output point locations in the presence of barriers

This paper studies a facility location model in which two-dimensional Euclidean space represents the layout of a shop floor. The demand is generated by fixed rectangular-shaped user sites and served by a single supply facility. It is assumed that (i) communication between the supply point and a demand facility occurs at an input/output (I/O) point on the demand facility itself, (ii) the facilities themselves pose barriers to travel and (iii) distance measurement is as per the L1-metric. The objective is to determine optimal locations of the supply facility as well as I/O points on the demand facilities, in order to minimize total transportation costs. Several, increasingly more complex, versions of the model are formulated and polynomial time algorithms are developed to find the optimal locations in each case.