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ABSTRACT: We consider the facility location problem where each facility can serve at most U clients. We analyze a local search algorithm for this problem which uses only the operations of add, delete and swap and
prove that any locally optimum solution is no more than 3 times the global optimum. This improves on a result of Chudak and
Williamson who proved an approximation ratio of 3+2Ö23+2\sqrt{2} for the same algorithm. We also provide an example which shows that our analysis is tight.
06/2010: pages 149-162;