Bi-objective facility location under uncertainty with an application in last-mile disaster relief

Najmesadat Nazemi (), Sophie N. Parragh () and Walter J. Gutjahr ()
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Najmesadat Nazemi: Johannes Kepler University Linz
Sophie N. Parragh: Johannes Kepler University Linz
Walter J. Gutjahr: University of Vienna

Annals of Operations Research, 2022, vol. 319, issue 2, No 10, 1689-1716

Abstract: Abstract Multiple and usually conflicting objectives subject to data uncertainty are main features in many real-world problems. Consequently, in practice, decision-makers need to understand the trade-off between the objectives, considering different levels of uncertainty in order to choose a suitable solution. In this paper, we consider a two-stage bi-objective single source capacitated model as a base formulation for designing a last-mile network in disaster relief where one of the objectives is subject to demand uncertainty. We analyze scenario-based two-stage risk-neutral stochastic programming, adaptive (two-stage) robust optimization, and a two-stage risk-averse stochastic approach using conditional value-at-risk (CVaR). To cope with the bi-objective nature of the problem, we embed these concepts into two criterion space search frameworks, the $$\epsilon $$ ϵ -constraint method and the balanced box method, to determine the Pareto frontier. Additionally, a matheuristic technique is developed to obtain high-quality approximations of the Pareto frontier for large-size instances. In an extensive computational experiment, we evaluate and compare the performance of the applied approaches based on real-world data from a Thies drought case, Senegal.

Keywords: Multi-objective optimization; Uncertainty; Facility location problem; Humanitarian relief (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10479-021-04422-4

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