The stochastic interdiction median problem with disruption intensity levels

Chaya Losada (), M. Scaparra (), Richard Church () and Mark Daskin ()

Annals of Operations Research, 2012, vol. 201, issue 1, 345-365

Abstract: In this paper we introduce a stochastic interdiction problem for median systems in which the operational state of the system’s disrupted elements in the aftermath of the disruption is uncertain as it is based on the intensity of the disruption. We assume that a disruption disables a facility with a given probability and this probability depends on the intensity of the disruption. The objective of this problem is to identify which disruption scenario entails a maximum overall traveling distance in serving all customers. We show that the initial two stage stochastic formulation can be reformulated into a deterministic counterpart whose size is polynomial in the number of facilities and intensity levels. Then, our ensuing efforts to solve the problem efficiently focus on studying alternative deterministic formulations that allow the solution of realistic size instances of the model. We observe that the most efficient of the deterministic formulations provide great scalability with respect to variations in the input parameters and size of the instances solved. Finally, we analyze the robustness of the optimal solutions due to misestimations in the probability functions that relate disruption intensity levels with the probabilities of facility survivability. Copyright Springer Science+Business Media, LLC 2012

Keywords: Facility location; Supply chain reliability; Stochastic interdiction (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (20)

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DOI: 10.1007/s10479-012-1170-x

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