Optimal location planning of logistics park with variable capacity

In this paper we study a logistics park location planning problem in which logistics park has variable capacities related to the park size that is decided in the given range and the size ranges are different in every potential location site. We introduce the design modes to deal with the nonlinear tracts cost function and obtain an integer programming model. Then column generation is used to solve the model to get a good low bound. Based on the lower bound, we obtain the best solution by tabu search. New columns are generated considering knapsack subproblems. Computational tests are presented using random data.