The Stochastic Location-Assignment Problem on a Tree

Ting Zeng and James Ward

Annals of Operations Research, 2005, vol. 136, issue 1, 97 pages

Abstract: In the assignment problem units of supply are assigned on a one-to-one basis to units of demand so as to minimize the sum of the cost associated with each supply-to-demand matched pair. Defined on a network, the supplies and demands are located at vertices and the cost of a supply-to-demand matched pair is the distance between them. This paper considers a two-stage stochastic program for locating the units of supply based upon only a probabilistic characterization of demand. The objective of the first-stage location problem is to minimize the expected cost of the second-stage assignment problem. Principal results include showing that the problem is NP-hard on a general network, has a simple solution procedure on a line network, and is solvable by a low order polynomial greedy procedure on a tree network. Potential applications are discussed. Copyright Springer Science + Business Media, Inc. 2005

Keywords: stochastic location; assignment problem; tree networks (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s10479-005-2040-6

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