Capacitated Facility Location Problem with Variable Coverage Radius in Distribution System

The problem of locating distribution centers (DCs) is one of the most important issues in design of supply chain. In previous researches on this problem, each DC could supply products for all of the customers. But in many real word problems, DCs can only supply products for customers who are in a certain distance from the facility, coverage radius. Thus, in this paper a multi-objective integer linear programming (MOILP) model is proposed to locate DCs in a two-echelon distribution system. In this problem, customers who are in the coverage radius of the DCs can be supplied. Moreover, we suppose that the coverage radius of each DC can be controlled by decision maker and it is a function of the amount of money invested on the DC. Finally, a random generated problem is used to verify the model and the computational results are presented.