This paper examines the discrete equal-capacity p-median problem that seeks
to locate p new facilities (medians) on a network, each having a given uni
form capacity, in order to minimize the sum of distribution costs while sat
isfying the demand on the network. Such problems arise, for example, in loc
al access and transport area telecommunication network design problems when
any number of a set of p facility units can be constructed at the specifie
d candidate sites (hence, the net capacity is an integer multiple of a give
n unit capacity). We develop various valid inequalities, a separation routi
ne for generating cutting planes that are specific members of such inequali
ties, as well as an enhanced reformulation that constructs a partial convex
hull representation that subsumes an entire class of valid inequalities vi
a its linear programming relaxation. We also propose suitable heuristic Sch
emes for this problem, based on sequentially rounding the continuous relaxa
tion solutions obtained for the various equivalent formulations of the prob
lem. Extensive computational results are provided to demonstrate the effect
iveness of the proposed valid inequalities, enhanced formulations, and heur
istic schemes. The results indicate that the proposed schemes for tightenin
g the underlying relaxations play a significant role in enhancing the perfo
rmance of both exact and heuristic solution methods for this class of probl
ems. (C) 2000 John Wiley & Sons, Inc.