The stochastic p-median problem with unknown cost probability distribution

  • Authors:
  • Roberto Tadei;Nicoletta Ricciardi;Guido Perboli

  • Affiliations:
  • Politecnico di Torino, Turin, Italy;"Sapienza", Universití di Roma, Rome, Italy;Politecnico di Torino, Turin, Italy

  • Venue:
  • Operations Research Letters
  • Year:
  • 2009

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Abstract

We want to find the location of p facilities which minimize the expected total cost, when the cost for using a facility is a stochastic variable with unknown probability distribution. Using the method of the asymptotic approximations the expected optimal value of the allocation variables is shown to be a multinomial Logit model.