A heuristic approach for the discrete dynamic location problem

In this paper a two-phase heuristic approach for the discrete dynamic location problem with establishment and removal costs is presented. The first phase consists of a drop procedure. In the second phase, a local search is performed as an attempt to correct bad decisions that might have been made. Computational tests with random generated data are presented in order to evaluate the heuristic performance, and compare it with a well-known procedure already in existence for solving the problem. Different alternatives analyzed when developing the heuristic are also mentioned. Finally, CPLEX execution times for solving the problem are presented.