The purpose of this thesis is to solve the uncapacitated facility location problem with subset constraints. Subset constraints here imply that no more than one facility from the same subset cannot be opened.
It is well-known that the simple plant location problem can be effectively solved by the dual-based solution method developed by Erlenkotter and Bilde & Krarup.
But out problem prohibits the direct use of the approach due to its subset constraints. Still we successfully modify the dual-based approach by adding new variables and devicing a new adjustment procedure in obtaining a near solution of our problem effectively.