Reliable Location-Routing Design Under Probabilistic Facility Disruptions

Weijun Xie (), Yanfeng Ouyang () and Sze Chun Wong ()
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Weijun Xie: School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332
Yanfeng Ouyang: Department of Civil and Environmental Engineering, University of Illinois at Urbana–Champaign, Urbana, Illinois 61801
Sze Chun Wong: Department of Civil Engineering, University of Hong Kong, Hong Kong

Transportation Science, 2016, vol. 50, issue 3, 1128-1138

Abstract: This study considers an integer programming formulation of a reliable location routing problem in which built facilities are subject to the risk of probabilistic disruptions. In this study we identify facility locations, and outbound delivery routing and backup plans during disruptions to minimize facility setup, routing, and customer penalty costs (if no delivery is possible). A variety of approaches (e.g., Lagrangian relaxation with embedded column generation and local search) to solving the problem are assessed. We conduct numerical case studies to test the performance of the proposed model and solution algorithms. The findings offer managerial insights into how various system parameters affect the optimal solution.

Keywords: location routing; reliable facility location; set covering; Lagrangian relaxation; column generation (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:50:y:2016:i:3:p:1128-1138

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