A hybrid IGS+VND algorithm for the capacitated Facility Location problem, considering customer preferences

This paper addresses the Capacitated Facility Location problem considering customer preferences. The problem aims to optimize the selection of open facilities and their capacity levels, as well as the allocation of customers to open facilities, to maximize met demand within a limited budget. In this problem, customer preferences guide the allocation. An algorithm based on the Iterated Greedy Search (IGS) metaheuristic with the Variable Neighborhood Descent (VND) local search procedure is proposed to solve instances of the problem. Computational experiments were conducted using instances from the literature. The results indicate that the proposed approach finds high-quality solutions in a reasonable amount of time.