A comparison of formulations and solution methods for the minimum-envy location problem

We consider a discrete facility location problem with a new form of equity criterion. The model discussed in the paper analyzes the case where demand points only have strict preference order on the sites where the plants can be located. The goal is to find the location of the facilities minimizing the total envy felt by the entire set of demand points. We define this new total envy criterion and provide several integer linear programming formulations that reflect and model this approach. The formulations are illustrated by examples. Extensive computational tests are reported, showing the potentials and limits of each formulation on several types of instances. Finally, some improvements for all the formulations previously presented are developed, obtaining in some cases much better resolution times. (C) 2008 Elsevier Ltd. All rights reserved.