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A Dual-Based Procedure for Stochastic Facility Location

Author

Listed:
  • François V. Louveaux

    (Facultés Universitaires Notre Dame de la Paix, Namur, Belgium)

  • D. Peeters

    (Université Catholique de Louvain, Louvain-la-Neuve, Belgium)

Abstract

In this paper, we study how the uncapacitated facility location problem is transformed into a two-stage stochastic program with recourse when uncertainty on demand, selling prices, production and transportation costs are introduced. We then present a dual-based procedure and indicate how the dual-descent and primal-dual adjustment procedures proposed by D. Erlenkotter (1978) in the static case can be made monotonically improving in the stochastic case. Results of computer experiments are reported.

Suggested Citation

  • François V. Louveaux & D. Peeters, 1992. "A Dual-Based Procedure for Stochastic Facility Location," Operations Research, INFORMS, vol. 40(3), pages 564-573, June.
    • Handle: RePEc:inm:oropre:v:40:y:1992:i:3:p:564-573
    DOI: 10.1287/opre.40.3.564
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    Citations

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    Cited by:

    1. Jia Shu & Qiang Ma & Sijie Li, 2010. "Integrated location and two-echelon inventory network design under uncertainty," Annals of Operations Research, Springer, vol. 181(1), pages 233-247, December.
    2. Shangyao Yan & Ching-Hui Tang, 2008. "An Integrated Framework for Intercity Bus Scheduling Under Stochastic Bus Travel Times," Transportation Science, INFORMS, vol. 42(3), pages 318-335, August.
    3. Murali, Pavankumar & Ordóñez, Fernando & Dessouky, Maged M., 2012. "Facility location under demand uncertainty: Response to a large-scale bio-terror attack," Socio-Economic Planning Sciences, Elsevier, vol. 46(1), pages 78-87.
    4. Yan, Shangyao & Tang, Ching-Hui, 2009. "Inter-city bus scheduling under variable market share and uncertain market demands," Omega, Elsevier, vol. 37(1), pages 178-192, February.
    5. Renata Turkeš & Kenneth Sörensen & Daniel Palhazi Cuervo, 2021. "A matheuristic for the stochastic facility location problem," Journal of Heuristics, Springer, vol. 27(4), pages 649-694, August.
    6. Albareda-Sambola, Maria & Fernández, Elena & Saldanha-da-Gama, Francisco, 2011. "The facility location problem with Bernoulli demands," Omega, Elsevier, vol. 39(3), pages 335-345, June.
    7. Snyder, Lawrence V. & Daskin, Mark S. & Teo, Chung-Piaw, 2007. "The stochastic location model with risk pooling," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1221-1238, June.
    8. Amir Hossein Sadeghi & Ziyuan Sun & Amirreza Sahebi-Fakhrabad & Hamid Arzani & Robert Handfield, 2023. "A Mixed-Integer Linear Formulation for a Dynamic Modified Stochastic p-Median Problem in a Competitive Supply Chain Network Design," Logistics, MDPI, vol. 7(1), pages 1-24, March.
    9. Bieniek, Milena, 2015. "A note on the facility location problem with stochastic demands," Omega, Elsevier, vol. 55(C), pages 53-60.
    10. K Sörensen, 2008. "Investigation of practical, robust and flexible decisions for facility location problems using tabu search and simulation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(5), pages 624-636, May.
    11. Felipe Caro & Kumar Rajaram & Jens Wollenweber, 2012. "Process Location and Product Distribution with Uncertain Yields," Operations Research, INFORMS, vol. 60(5), pages 1050-1063, October.
    12. Mumtaz Karatas & Nasuh Razi & Murat M. Gunal, 2017. "An ILP and simulation model to optimize search and rescue helicopter operations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(11), pages 1335-1351, November.
    13. Killmer, K. A. & Anandalingam, G. & Malcolm, S. A., 2001. "Siting noxious facilities under uncertainty," European Journal of Operational Research, Elsevier, vol. 133(3), pages 596-607, September.
    14. Asgeir Tomasgard & Shane Dye & Stein W. Wallace & Leen Stougie, 1997. "Modelling in Distributed Telecommunications Networks," Tinbergen Institute Discussion Papers 97-030/4, Tinbergen Institute.
    15. Shangyao Yan & Fei-Yen Hsiao & Yi-Chun Chen, 2015. "Inter-School Bus Scheduling Under Stochastic Travel Times," Networks and Spatial Economics, Springer, vol. 15(4), pages 1049-1074, December.
    16. Contreras, Ivan & Cordeau, Jean-François & Laporte, Gilbert, 2011. "Stochastic uncapacitated hub location," European Journal of Operational Research, Elsevier, vol. 212(3), pages 518-528, August.

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