Optimization approaches for a fair multi-source capacitated facility location problem
We incorporate a fairness measure, known in location theory as the conditional β-mean, into the classic Multi-Source Capacitated Facility Location Problem (MSCFLP). Conditional β-mean controls the average distance traveled by (100 · β) percentage of the served units who travel the longest distances. Minimizing conditional β-mean results in a less conservative and more flexible approach than standard worst-case minimization. We term the resulting problem the Fair MSCFLP, and we develop five mixed-integer mathematical formulations to model it: two bilevel models, a bilinear model, and two Mixed-Integer Linear Programming (MILP) formulations.
Keywords: Facility Location Fairness Mathematical Programming Matheuristic