Optimal facility location with random throughput costs

Authors:
Nicoletta Ricciardi;Roberto Tadei;Andrea Grosso
Affiliations:
Dept. di Statistica, University "La Sapienza", Rome, Piazzale Aldo Moro 5, Roma, Italy;Polytechnic of Turin, Corso Duca degli Abcuzzi 24, Turin, Italy;Polytechnic of Turin, Corso Duca degli Abcuzzi 24, Turin, Italy
Venue:
Computers and Operations Research - Location analysis
Year:
2002

Citing 4
Cited 3

Methods for solving nonlinear equations used in evaluating emergency vehicle busy probabilities

Operations Research
A dual-based procedure for stochastic facility location

Operations Research
Characterization of the stochastic median queue trajectory in a plane with generalized distances

Operations Research
Computers and Intractability: A Guide to the Theory of NP-Completeness

Computers and Intractability: A Guide to the Theory of NP-Completeness

A scenario analysis of a location problem with uncertain demand

International Journal of Computer Applications in Technology
The Two-Echelon Capacitated Vehicle Routing Problem: Models and Math-Based Heuristics

Transportation Science
The stochastic p-median problem with unknown cost probability distribution

Operations Research Letters

Quantified Score

Hi-index	0.00

Visualization

Abstract

In this paper we consider the optimal location and size of facilities where the throughput costs for each facility are random. Given a set of origins and a set of destinations, we want to determine the optimal location and size of a set of intermediate facilities in order to minimize the expected total generalized transportation cost. The generalized transportation cost of a freight unit from an origin to a destination passing through a facility is the sum of two terms: the transportation cost from the origin to the destination through the facility and the throughput cost of the facility. While the first term is deterministic, the second one is stochastic with a Gumbel probability distribution. Looking for the expected value of the optimal solution, a mixed deterministic nonlinear problem for the optimal location of the facilities is derived. Two heuristics, which give very good approximations to the optimum, are proposed.