In this paper we pose the location-allocation problem (single stage) with shortages and inventory variables in a style similar to Sharma (1991) where the resulting 0-1 MILP is solved by Bender’s decomposition and the associated all real problem is solved by Dantzig-Wolfe decomposition where the sub problems are posed as min-cost-network flow problems. It offers computational advantages. Sharma (1991) only considered inventory costs and did not consider the shortage costs. This way the formulation presented in this paper is unique.
Single Stage Single Commodity and Multi Period Warehouse Location Problem with Location, Distribution Inventory and Shortage Costs
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