Note---The Single Facility Minimax Distance Problem Under Stochastic Location of Demand

Robert Carbone and Abraham Mehrez
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Robert Carbone: Université Laval, Quebec
Abraham Mehrez: University of Bengurion, Beersheba, Israel

Management Science, 1980, vol. 26, issue 1, 113-115

Abstract: This note extends the minimum maximum distance single facility location problem to situations where the locations of prospective demand points are considered to be random variables. Two types of decision are analyzed for this setting under the assumption of independent and identical normal distributions with the same means: locating on the basis of an expected value criterion or adopting a wait-and-see policy. Through the concept of the expected value of perfect information (EVPI), it is shown for one-dimensional location decisions that a substantial reduction in maximum distance may be realized by the adoption of a wait-and-see policy.

Keywords: stochastic location; facility location (search for similar items in EconPapers)
Date: 1980
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:26:y:1980:i:1:p:113-115

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