Locating facilities with resiliency to capacity failures and correlated demand uncertainty

Xiaohan Lu and Chun Cheng

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 153, issue C

Abstract: This paper studies a capacitated facility location problem under disruptions, where disruption risk not only diminishes facilities’ capacity partially or completely but also affects customers’ demand patterns. We use a budgeted uncertainty set to simultaneously capture facilities’ disruptions and customers’ uncertain demand caused by the failures of nearby facilities. Three two-stage robust optimization formulations with different objectives and performance bounds are built to model the problem. Both column-and-constraint generation algorithm and Benders decomposition method are implemented to solve the models. Numerical tests are conducted to study the impact of disruption correlated demand uncertainty and the performance of models and algorithms.

Keywords: Facility location; Disruption risk; Disruption correlated demand uncertainty; Two-stage robust optimization (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554521002088
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:153:y:2021:i:c:s1366554521002088

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2021.102444

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().