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A Probabilistic Analysis of the Capacitated Facility Location Problem

Nanda Piersma
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Nanda Piersma: Erasmus University

Journal of Combinatorial Optimization, 1999, vol. 3, issue 1, No 3, 50 pages

Abstract: Abstract The solution value $$Z_n^*$$ of a stochastic version of the capacitated facility location problem is studied. It is shown that, for large numbers of customers n, the value of $$\tfrac{1}{n}Z_n^*$$ can be closely approximated by θ, where the constant θ is identified as a function of the parameters of the underlying stochastic model. Furthermore, an extensive probabilistic analysis is performed on the difference $$\tfrac{1}{n}Z_n - \theta$$ that includes an exponential inequality on the tail distribution, a classification of the speed of convergence and a central limit theorem.

Keywords: capacitated facility location; convergence of stochastic processes; empirical process (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1023/A:1009861004623

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