An Efficient Approach for Solving Reliable Facility Location Models

Authors:
Robert Aboolian;Tingting Cui;Zuo-Jun Max Shen
Affiliations:
College of Business Administration, California State University San Marcos, San Marcos, California 92096;Department of Industrial Engineering and Operations Research, University of California Berkeley, Berkeley, California 94720;Department of Industrial Engineering and Operations Research, University of California Berkeley, Berkeley, California 94720
Venue:
INFORMS Journal on Computing
Year:
2013

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Abstract

We consider reliable facility location models in which facilities are subject to unexpected failures, and customers may be reassigned to facilities other than their regular facilities. The objective is to minimize the total expected costs in normal and failure scenarios. We allow facilities to have different failure rates and do not limit the number of facilities that might be assigned to a customer. Lower bounds for reliable uncapacitated fixed-charge location problem RUFLP are derived and used to introduce a class of efficient algorithms for solving the RUFLP problem.