facility location

A Solution Method for Single-Source Capacitated Facility Location Problems Under Decision-Dependent Demand

Categories Combinatorial Optimization, Stochastic Programming Tags , ,

We present a model and an exact solution method for single-source capacitated facility location problems with decision-dependent demand uncertainty. The model allows the joint probability distribution of customer demands to depend on the facility to which demand points are allocated. The number of possible decision-dependent distributions is therefore equal to the number of feasible allocations … Read more

Facility Location with Decision-Dependent Scenario Probabilities: Linked Lifted Cuts and a Scenario-Decomposed Branch-and-Cut

Categories Applications - OR and Management Sciences, Combinatorial Optimization, Stochastic Programming Tags , , , , , , , , ,

We study two-stage facility location in which the probability of each demand scenario is an affine function of the opening decisions, so the objective multiplies a decision-dependent probability by a decision-dependent recourse value and is bilinear in the binary first stage. The standard treatment linearizes these products with McCormick envelopes over global bounds on the … Read more

Two-Stage Stochastic Optimization for Capacitated Facility Location Under Demand Uncertainty

Categories (Mixed) Integer Linear Programming, Facility Planning and Design, Stochastic Programming Tags , , , , ,

Facility location decisions are typically made before demand is fully known, yet most applied studies solve a single deterministic model using expected or nominal demand. This paper formulates and solves a capacitated facility location problem using a real academic benchmark instance, then extends it to a two-stage stochastic program in which facility-opening decisions are made … Read more

A Combinatorial Branch-and-Bound Algorithm for the Capacitated Facility Location Problem under Strict Customer Preferences

Categories Bilevel Optimization, Branch and Cut Algorithms, Combinatorial Optimization Tags , , , ,

This work proposes a combinatorial branch-and-bound (B&B) algorithm for the capacitated facility location problem under strict customer preferences (CFLP-SCP). We use combinatorial insights into the problem structure to do preprocessing, model branching implications, enforce feasibility or prove infeasibility in each node, select variables and derive primal and dual bounds in each node of the B&B … Read more

Algorithmic Approaches for Identifying the Trade-off between Pessimism and Optimism in a Stochastic Fixed Charge Facility Location Problem

Categories Facility Planning and Design, Robust Optimization, Stochastic Programming Tags , , ,

We introduce new algorithms to identify the trade-off (TRO) between adopting a distributional belief and hedging against ambiguity when modeling uncertainty in a capacitated fixed charge facility location problem (CFLP). We first formulate a TRO model for the CFLP (TRO-CFLP), which determines the number of facilities to open by minimizing the fixed establishment cost and … Read more

Paving the Way for More Accessible Cancer Care in Low-Income Countries with Optimization

Categories Applications - OR and Management Sciences Tags , , , , ,

Cancers are a growing cause of morbidity and mortality in low-income countries. Geographic access plays a key role in both timely diagnosis and successful treatment. In areas lacking well-developed road networks, seasonal weather events can lengthen already long travel times to access care. Expanding facilities to offer cancer care is expensive and requires staffing by … Read more

Insights into the computational complexity of the single-source capacitated facility location problem with customer preferences

Categories Combinatorial Optimization Tags , , ,

Single-source capacitated facility location problems are well studied in the operations research literature, yet classic problems often lack practicability by disregarding the customers’ perspective: An authority that assigns customers to open facilities deprives customers from choosing facilities according to their individual preferences. In reality, this can render solutions infeasible, as customers may deviate to their … Read more

Cover-based inequalities for the single-source capacitated facility location problem with customer preferences

Categories Combinatorial Optimization, Integer Programming Tags , , ,

The single-source capacitated facility location problem with customer preferences (SSCFLPCP) is known to be strongly NP-hard. Computational tests imply that state-of-the-art solvers struggle with computing exact solutions. In this paper, we contribute two novel preprocessing methods which reduce the size of the considered integer programming formulation, and introduce sets of valid inequalities which decrease the … Read more

Data-Driven Reliable Facility Location Design

Categories Data Science Applications, Network Optimization, Supply Chain Management Tags , , ,

We study the reliable (uncapacitated) facility location (RFL) problem in a data-driven environment where historical observations of random demands and disruptions are available. Owing to the combinatorial optimization nature of the RFL problem and the mixed-binary randomness of parameters therein, the state-of-the-art RFL models applied to the data-driven setting either suggest overly conservative solutions, or … Read more

discrete location models with customers’ choice and path improvements

Categories (Mixed) Integer Linear Programming, Integer Programming Tags , , , , , ,

We examine several facility location problems within a directed network involving two distinct cost types. The first, referred to as the customer cost, represents the expense each customer considers when selecting a facility to obtain service (e.g., delivery time or a measure of quality degradation). Consequently, once facilities are established, each customer chooses the one … Read more