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(a) Z.S/ C Z.T/ Z.S [ T/ C Z.S \ T/; 8 S;T N .
(b) Z.S [f i g / Z.S/ Z.T [f i g / Z.T/; 8 S T N and i 2 N .
(c) If, in addition, Z is non-increasing, then Z.T/ Z.S/ C P
i2T nS
i .S/ ,
8 S;T I .
In the following we suppose that N is the set of potential facilities, i.e. N D I,
and we consider as set function Z the cost function of UFLP solutions. That is
Z.S/ D P i2S f i C P j2J min i2I c ij . To see that Z.:/ is supermodular we recall
that a positive linear combination of supermodular functions is supermodular and
we observe that Z.S/ D f.S/ C c.S/ with f.S/ D P i2S f i and c.S/ D
P j2J min i2I c ij . Thus, it is enough to see that both f.:/and c.:/ are supermodular.
Because f.S/is linear, it is clear that it is supermodular. We next see that c.:/ is
also supermodular.
Proposition 3.2 c.:/ is supermodular and non-increasing.
Proof We will use the characterization of supermodular functions of Lemma 3.1 b.
For S T I,andi 2 I n T ,
i 0 2S c i 0 j D X
j2J
min 0;c ij min
i 0 2S c i 0 j
c.S [f i g / c.S/ D X
j2J
min
i 0 2S[fig
c i 0 j min
min 0;c ij min
i 0 2T
c i 0 j D X
j2J
c i 0 j D
X
min
i 0 2T [fig
c i 0 j min
i 0 2T
j2J
c.T [f i g / c.T/;
where the inequality follows since min i 0 2S c i 0 j min i 0 2T c i 0 j for all j 2 J.
Furthermore, c is non-increasing since
min
i 0 2S[fig
c i 0 j 0:
c.S [f i g / c.S/ D X
j2J
c i 0 j min
i 0 2S
For the function c.:/ the incremental value of adding element i to the set S is
c.S [f i g / c.S/. Hence, statement (b) of Lemma 3.1 can be rewritten as
c.T/ c.S/ C X
i
Œc.S [f i g / c.S/ D c.S/ C X
i
Œc.S [f i g / c.S/; 8 S;T I:
2
T
n
S
2
T
n
S
(3.47)
The UFLP formulation below exploits the supermodular property of z .:/ and c.:/
as well as the non-increasing property of c.:/. Consider the polyhedron
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