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A risk-averse location-protection problem under intentional facility disruptions: A modified hybrid decomposition algorithm

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  • Jalali, Sajjad
  • Seifbarghy, Mehdi
  • Niaki, Seyed Taghi Akhavan

Abstract

The rising disruptions of interdictors force supply chains’ designers to embody the protection decisions when locating the facilities. In the presence of variability in the intensity of disruptions, a risk measure is incorporated into the decision-making. The designer-interdictor bi-level problem, therefore, optimizes the joint location and protection decisions with respect to the conditional value-at-risk. This configuration has been absent from the literature. An accelerated modified Benders decomposition algorithm is developed and enhanced by being hybridized with a sample average approximation-based genetic algorithm. We examine how this new configuration influences the optimal solutions and assess the effectiveness of the proposed method.

Suggested Citation

  • Jalali, Sajjad & Seifbarghy, Mehdi & Niaki, Seyed Taghi Akhavan, 2018. "A risk-averse location-protection problem under intentional facility disruptions: A modified hybrid decomposition algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 196-219.
    • Handle: RePEc:eee:transe:v:114:y:2018:i:c:p:196-219
    DOI: 10.1016/j.tre.2018.04.004
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