A review of hierarchical facility location models

In this study, we review the hierarchical facility location models. Although there have been a number of review papers on hierarchical facility problems, a comprehensive treatment of models has not been provided since the mid-80s. This review fills the gap in the literature. We first classify the hierarchical facility problems according to the features of systems studied, which are based on flow pattern, service availability at each level of the hierarchy, and spatial configuration of services in addition to the objectives to locate facilities. We then investigate the applications, mixed integer programming models, and solution methods presented for the problem. With an overview of the selected works, we consolidate the main results in the literature.