IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v81y2015ip2p596-615.html
   My bibliography  Save this article

A reliability model for facility location design under imperfect information

Author

Listed:
  • Yun, Lifen
  • Qin, Yong
  • Fan, Hongqiang
  • Ji, Changxu
  • Li, Xiaopeng
  • Jia, Limin

Abstract

This paper aims to propose a modeling framework for reliable facility location design under imperfect information, i.e., when customers do not know the real-time information of facility disruption states. We consider a realistic “trial-and-error” strategy for a customer to visit facilities without knowing their states until arriving at this facility; i.e., a customer keeps trying a number of pre-assigned facilities until she acquires the service or is forced to give up trying. The research problem is to determine the best facility location that minimizes the total system cost, including initial facility investment and expected long-term operational cost from transportation and loss of service, when facilities are subject to probabilistic disruptions and customers use the trial-and-error strategy. This problem is formulated into a compact integer program (IP), and we develop a Lagrangian relaxation algorithm to solve it. A set of case studies are conducted to test the performance of the proposed algorithm, and illustrate the applicability of the proposed model. The results reveal a number of interesting insights into the system design, including the significance of multi-level customer-facility assignments and the existence of a robust system design against variation of the loss-of-service penalty.

Suggested Citation

  • Yun, Lifen & Qin, Yong & Fan, Hongqiang & Ji, Changxu & Li, Xiaopeng & Jia, Limin, 2015. "A reliability model for facility location design under imperfect information," Transportation Research Part B: Methodological, Elsevier, vol. 81(P2), pages 596-615.
  • Handle: RePEc:eee:transb:v:81:y:2015:i:p2:p:596-615
    DOI: 10.1016/j.trb.2014.10.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261514001891
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.trb.2014.10.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mark S. Daskin, 1983. "A Maximum Expected Covering Location Model: Formulation, Properties and Heuristic Solution," Transportation Science, INFORMS, vol. 17(1), pages 48-70, February.
    2. Brotcorne, Luce & Laporte, Gilbert & Semet, Frederic, 2003. "Ambulance location and relocation models," European Journal of Operational Research, Elsevier, vol. 147(3), pages 451-463, June.
    3. Chen, Qi & Li, Xiaopeng & Ouyang, Yanfeng, 2011. "Joint inventory-location problem under the risk of probabilistic facility disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 991-1003, August.
    4. 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.
    5. Tingting Cui & Yanfeng Ouyang & Zuo-Jun Max Shen, 2010. "Reliable Facility Location Design Under the Risk of Disruptions," Operations Research, INFORMS, vol. 58(4-part-1), pages 998-1011, August.
    6. Li, Xiaopeng & Ouyang, Yanfeng & Peng, Fan, 2013. "A supporting station model for reliable infrastructure location design under interdependent disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 80-93.
    7. Cui, Tingting & Ouyang, Yanfeng & Shen, Zuo-Jun Max J, 2010. "Reliable Facility Location Design under the Risk of Disruptions," University of California Transportation Center, Working Papers qt5sh2c7pw, University of California Transportation Center.
    8. M. L. Balinski, 1965. "Integer Programming: Methods, Uses, Computations," Management Science, INFORMS, vol. 12(3), pages 253-313, November.
    9. Li, Xiaopeng & Ouyang, Yanfeng, 2010. "A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 535-548, May.
    10. Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
    11. Calvo, Alberto B. & Marks, David H., 1973. "Location of health care facilities: An analytical approach," Socio-Economic Planning Sciences, Elsevier, vol. 7(5), pages 407-422, October.
    12. Carlos F. Daganzo, 2005. "Logistics Systems Analysis," Springer Books, Springer, edition 0, number 978-3-540-27516-9, October.
    13. Peng, Peng & Snyder, Lawrence V. & Lim, Andrew & Liu, Zuli, 2011. "Reliable logistics networks design with facility disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1190-1211, September.
    14. Li, Xiaopeng, 2013. "An integrated modeling framework for design of logistics networks with expedited shipment services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 46-63.
    15. Lian Qi & Zuo-Jun Max Shen & Lawrence V. Snyder, 2010. "The Effect of Supply Disruptions on Supply Chain Design Decisions," Transportation Science, INFORMS, vol. 44(2), pages 274-289, May.
    16. S. L. Hakimi, 1965. "Optimum Distribution of Switching Centers in a Communication Network and Some Related Graph Theoretic Problems," Operations Research, INFORMS, vol. 13(3), pages 462-475, June.
    17. ReVelle, Charles, 1989. "Review, extension and prediction in emergency service siting models," European Journal of Operational Research, Elsevier, vol. 40(1), pages 58-69, May.
    18. Bakuli, David L. & MacGregor Smith, J., 1996. "Resource allocation in state-dependent emergency evacuation networks," European Journal of Operational Research, Elsevier, vol. 89(3), pages 543-555, March.
    19. Lawrence V. Snyder & Mark S. Daskin, 2005. "Reliability Models for Facility Location: The Expected Failure Cost Case," Transportation Science, INFORMS, vol. 39(3), pages 400-416, August.
    20. An, Shi & Cui, Na & Li, Xiaopeng & Ouyang, Yanfeng, 2013. "Location planning for transit-based evacuation under the risk of service disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 1-16.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Menezes, Mozart B.C. & Ruiz-Hernández, Diego & Verter, Vedat, 2016. "A rough-cut approach for evaluating location-routing decisions via approximation algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 87(C), pages 89-106.
    2. Chen, Wanying (Amanda) & De Koster, René & Gong, Yeming, 2023. "Warehouses without aisles: Layout design of a multi-deep rack climbing robotic system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    3. Zarrinpoor, Naeme & Fallahnezhad, Mohammad Saber & Pishvaee, Mir Saman, 2018. "The design of a reliable and robust hierarchical health service network using an accelerated Benders decomposition algorithm," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1013-1032.
    4. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    5. Fan, Hongqiang & Yun, Lifen & Li, Xiaopeng, 2022. "A linear-time crystal-growth algorithm for discretization of continuum approximation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    6. Jiguang Wang & Yucai Wu, 2018. "An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions," Sustainability, MDPI, vol. 10(9), pages 1-13, August.
    7. Caio Vitor Beojone & Regiane Máximo de Souza & Ana Paula Iannoni, 2021. "An Efficient Exact Hypercube Model with Fully Dedicated Servers," Transportation Science, INFORMS, vol. 55(1), pages 222-237, 1-2.
    8. Zamani, Shokufeh & Arkat, Jamal & Niaki, Seyed Taghi Akhavan, 2022. "Service interruption and customer withdrawal in the congested facility location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    9. Yun, Lifen & Wang, Xifu & Fan, Hongqiang & Li, Xiaopeng, 2020. "Reliable facility location design with round-trip transportation under imperfect information Part I: A discrete model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    10. Cui, Jianxun & Zhao, Meng & Li, Xiaopeng & Parsafard, Mohsen & An, Shi, 2016. "Reliable design of an integrated supply chain with expedited shipments under disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 143-163.
    11. Huizhen Zhang & Cesar Beltran-Royo & Bo Wang & Ziying Zhang, 2019. "Two-phase semi-Lagrangian relaxation for solving the uncapacitated distribution centers location problem for B2C E-commerce," Computational Optimization and Applications, Springer, vol. 72(3), pages 827-848, April.
    12. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. An, Shi & Cui, Na & Bai, Yun & Xie, Weijun & Chen, Mingliu & Ouyang, Yanfeng, 2015. "Reliable emergency service facility location under facility disruption, en-route congestion and in-facility queuing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 199-216.
    2. Yun, Lifen & Wang, Xifu & Fan, Hongqiang & Li, Xiaopeng, 2020. "Reliable facility location design with round-trip transportation under imperfect information Part I: A discrete model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    3. Cui, Jianxun & Zhao, Meng & Li, Xiaopeng & Parsafard, Mohsen & An, Shi, 2016. "Reliable design of an integrated supply chain with expedited shipments under disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 143-163.
    4. An, Shi & Cui, Na & Li, Xiaopeng & Ouyang, Yanfeng, 2013. "Location planning for transit-based evacuation under the risk of service disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 1-16.
    5. Fan, Hongqiang & Yun, Lifen & Li, Xiaopeng, 2022. "A linear-time crystal-growth algorithm for discretization of continuum approximation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    6. Weijun Xie & Yanfeng Ouyang & Sze Chun Wong, 2016. "Reliable Location-Routing Design Under Probabilistic Facility Disruptions," Transportation Science, INFORMS, vol. 50(3), pages 1128-1138, August.
    7. Jabbarzadeh, Armin & Fahimnia, Behnam & Sheu, Jiuh-Biing & Moghadam, Hani Shahmoradi, 2016. "Designing a supply chain resilient to major disruptions and supply/demand interruptions," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 121-149.
    8. Wang, Xin & Lim, Michael K. & Ouyang, Yanfeng, 2015. "Infrastructure deployment under uncertainties and competition: The biofuel industry case," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 1-15.
    9. Li, Xiaopeng, 2013. "An integrated modeling framework for design of logistics networks with expedited shipment services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 46-63.
    10. Yu, Guodong & Haskell, William B. & Liu, Yang, 2017. "Resilient facility location against the risk of disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 82-105.
    11. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    12. Zhang, Yanzi & Diabat, Ali & Zhang, Zhi-Hai, 2021. "Reliable closed-loop supply chain design problem under facility-type-dependent probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 180-209.
    13. Li, Xiaopeng & Ouyang, Yanfeng & Peng, Fan, 2013. "A supporting station model for reliable infrastructure location design under interdependent disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 80-93.
    14. Yu, Guodong & Zhang, Jie, 2018. "Multi-dual decomposition solution for risk-averse facility location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 70-89.
    15. Yun Bai & Xiaopeng Li & Fan Peng & Xin Wang & Yanfeng Ouyang, 2015. "Effects of Disruption Risks on Biorefinery Location Design," Energies, MDPI, vol. 8(2), pages 1-19, February.
    16. Zarrinpoor, Naeme & Fallahnezhad, Mohammad Saber & Pishvaee, Mir Saman, 2018. "The design of a reliable and robust hierarchical health service network using an accelerated Benders decomposition algorithm," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1013-1032.
    17. Jiang, Zhoutong & Ouyang, Yanfeng, 2021. "Reliable location of first responder stations for cooperative response to disasters," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 20-32.
    18. Wang, Zhaodong & Xie, Siyang & Ouyang, Yanfeng, 2022. "Planning reliable service facility location against disruption risks and last-mile congestion in a continuous space," Transportation Research Part B: Methodological, Elsevier, vol. 165(C), pages 123-140.
    19. Zhang, Ying & Snyder, Lawrence V. & Qi, Mingyao & Miao, Lixin, 2016. "A heterogeneous reliable location model with risk pooling under supply disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 151-178.
    20. Cheng, Chun & Qi, Mingyao & Zhang, Ying & Rousseau, Louis-Martin, 2018. "A two-stage robust approach for the reliable logistics network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 185-202.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:81:y:2015:i:p2:p:596-615. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.