Stochastic p-Robust Location Problems

Many objectives have been proposed for optimization under uncertainty. The typical stochastic programming objective of minimizing expected cost may yield solutions that are inexpensive in the long run but perform poorly under certain realizations of the random data. On the other hand, the typical robust optimization objective of minimizing maximum cost or regret tends to … Read more

Reliability Models for Facility Location: The Expected Failure Cost Case

Classical facility location models like the P-median problem (PMP) and the uncapacitated fixed-charge location problem (UFLP) implicitly assume that once constructed, the facilities chosen will always operate as planned. In reality, however, facilities “fail” from time to time due to poor weather, labor actions, changes of ownership, or other factors. Such failures may lead to … Read more

Capacitated Facility Location Model with Risk Pooling

The Facility Location Model with Risk Pooling (LMRP) extends the uncapacitated fixed charge model to incorporate inventory decisions at the distribution centers (DCs). In this paper, we introduce a capacitated version of the LMRP that handles inventory management at the DCs such that the capacity limitations at the DCs are not exceeded. We consider a … Read more

An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results

We introduce a new distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers. In addition, the model incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term. The model is formulated as a … Read more