Bi-Objective Optimization of Service-Oriented Location-Pricing Model Using Electromagnetism-Like Mechanism Algorithm

Abstract

This paper develops a multi-objective multi-layer location-pricing (MLLP) model with congested facilities in which the facilities act like a classic queuing system. The customers who arrive to this system receive service at all layers in a predetermined order to fulfill their demands. The goal is to determine (1) optimal number of the facilities required at each layer, (2) optimal allocation of customers to facilities, and (3) optimal price of providing service at each layer. The objective functions are to maximize the total profit of the system and to minimize the sum of travel and waiting times, simultaneously. The problem is formulated as a multi-objective nonlinear integer mathematical programming model. Since the problem is hard to be solved analytically, we present a multi-objective meta-heuristic algorithm (MHA) based on an electromagnetism-like mechanism (ELM) as a solution for multi-objective MLLP. This algorithm used an elitist mechanism to strengthen the structure of search engine in order to find better quality solutions. The results indicate the efficiency and effectiveness of the proposed algorithm in comparison with the traditional ELM.