This thesis deals with the facility location problem in which lower and upper limitations of capacity are imposed. In most studies on the acility location problem, they considered upper limited capacity only. But in the real situation, there exists a minimum capacity, i.e., a minimum size limit on the amount of goods which can be handled is specified to assure a sufficient degree of operating efficiency.
This study suggests a Branch & Bound procedure which can solve this problem. In the proposed B & B procedure, the node simplification methods by Akinc-Khumawala and another simplification method by Roodman-Schwarz are applied to reduce the size of the B & B tree and the total computation time. Lagrangean Relaxation Method by Nauss is also employed to tighten lower bound in bounding procedure. Computational results for two problem sets are given.
