IBM ILOG Solver User's Manual > Local Search > Combining Complete and Local Search: Locating Warehouses > Describe

In this problem we must make a decision about how many warehouses to build and where to build them. We can choose from several potential warehouses, each of which has a specific limited quantity of goods available (capacity) and a specific cost, buildCosts, to build. In addition, we have a number of clients that must each be served by one of the warehouses we build. Each of these clients demands a specific quantity of goods. The total quantity demanded by all clients served by a warehouse cannot exceed its capacity.

Each warehouse also has several costs, serveCosts, that represent respectively the cost if each client was served from that warehouse. The cost for a warehouse is the sum of the service costs of all clients served from that warehouse and the cost to build the warehouse. The total cost of the solution is the sum of all the warehouse costs. The goal of the problem is to provide service to all clients within the constraint of warehouse capacity while minimizing total cost.