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