In cases where certain simplifications are allowed, the location optimisation of given and indivisible different economic units may be modelled as a bi-value weighted distribution problem. The paper presents a heuristic algorithm for this network-flow-type problem and also a partial enumeration algorithm for deriving the exact solution. But it is also pointed out that an initial sub-optimal solution can quickly be improved with a derivation on a direct line only, if the exact solution is not absolutely essential. A numerical example is used to illustrate the method of derivation on a direct line starting with an upper bound given by a sub-optimal solution.
Computational experience with the reverse search vertex enumeration algorithm