The main topic of this thesis is the center closing problem, which is a facility location problem. Basic properties and exact algorithms for solving the problem are presented. Because the problem is NP-complete, approximation algorithms are also presented. Time complexity, the quality of results, and the ratio between the two are tested for approximation algorithms using empirical tests. For the purpose of testing the algorithms a postal network of Slovenia was constructed, the goal of which was to solve the post office closing problem.
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