IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v50y2016i3p1128-1138.html
   My bibliography  Save this article

Reliable Location-Routing Design Under Probabilistic Facility Disruptions

Author

Listed:
  • Weijun Xie

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Yanfeng Ouyang

    (Department of Civil and Environmental Engineering, University of Illinois at Urbana–Champaign, Urbana, Illinois 61801)

  • Sze Chun Wong

    (Department of Civil Engineering, University of Hong Kong, Hong Kong)

Abstract

This study considers an integer programming formulation of a reliable location routing problem in which built facilities are subject to the risk of probabilistic disruptions. In this study we identify facility locations, and outbound delivery routing and backup plans during disruptions to minimize facility setup, routing, and customer penalty costs (if no delivery is possible). A variety of approaches (e.g., Lagrangian relaxation with embedded column generation and local search) to solving the problem are assessed. We conduct numerical case studies to test the performance of the proposed model and solution algorithms. The findings offer managerial insights into how various system parameters affect the optimal solution.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:ortrsc:v:50:y:2016:i:3:p:1128-1138
    DOI: 10.1287/trsc.2015.0630
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2015.0630
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.2015.0630?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
    ---><---

    References listed on IDEAS

    as
    1. Nagy, Gabor & Salhi, Said, 2007. "Location-routing: Issues, models and methods," European Journal of Operational Research, Elsevier, vol. 177(2), pages 649-672, March.
    2. Perl, Jossef & Daskin, Mark S., 1985. "A warehouse location-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 19(5), pages 381-396, October.
    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. Christian Prins & Caroline Prodhon & Angel Ruiz & Patrick Soriano & Roberto Wolfler Calvo, 2007. "Solving the Capacitated Location-Routing Problem by a Cooperative Lagrangean Relaxation-Granular Tabu Search Heuristic," Transportation Science, INFORMS, vol. 41(4), pages 470-483, November.
    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. Martin Desrochers & Jacques Desrosiers & Marius Solomon, 1992. "A New Optimization Algorithm for the Vehicle Routing Problem with Time Windows," Operations Research, INFORMS, vol. 40(2), pages 342-354, April.
    8. 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.
    9. Michael Lim & Mark S. Daskin & Achal Bassamboo & Sunil Chopra, 2010. "A facility reliability problem: Formulation, properties, and algorithm," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(1), pages 58-70, February.
    10. David Simchi-Levi, 1991. "The Capacitated Traveling Salesman Location Problem," Transportation Science, INFORMS, vol. 25(1), pages 9-18, February.
    11. 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.
    12. Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
    13. Barreto, Sergio & Ferreira, Carlos & Paixao, Jose & Santos, Beatriz Sousa, 2007. "Using clustering analysis in a capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 968-977, June.
    14. Laporte, Gilbert & Nobert, Yves, 1981. "An exact algorithm for minimizing routing and operating costs in depot location," European Journal of Operational Research, Elsevier, vol. 6(2), pages 224-226, February.
    15. 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.
    16. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    17. Mina, Hokey & Jayaraman, Vaidyanathan & Srivastava, Rajesh, 1998. "Combined location-routing problems: A synthesis and future research directions," European Journal of Operational Research, Elsevier, vol. 108(1), pages 1-15, July.
    18. O’Hanley, Jesse R. & Scaparra, M. Paola & García, Sergio, 2013. "Probability chains: A general linearization technique for modeling reliability in facility location and related problems," European Journal of Operational Research, Elsevier, vol. 230(1), pages 63-75.
    19. Mozart Menezes & O. Berman & D. Krass, 2007. "Facility Reliability Issues in Network p-Median Problems: Strategic Centralization and Co-location Effects," Post-Print halshs-00170396, HAL.
    20. Berman, Oded & Krass, Dmitry & Menezes, Mozart B.C., 2013. "Location and reliability problems on a line: Impact of objectives and correlated failures on optimal location patterns," Omega, Elsevier, vol. 41(4), pages 766-779.
    21. Laporte, Gilbert & Louveaux, Francois & Mercure, Helene, 1989. "Models and exact solutions for a class of stochastic location-routing problems," European Journal of Operational Research, Elsevier, vol. 39(1), pages 71-78, March.
    22. 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.
    23. Carlos F. Daganzo, 1984. "The Distance Traveled to Visit N Points with a Maximum of C Stops per Vehicle: An Analytic Model and an Application," Transportation Science, INFORMS, vol. 18(4), pages 331-350, November.
    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. Ahmed Foda & Moataz Mohamed & Hany Farag & Ehab El-Saadany, 2023. "A resilient battery electric bus transit system configuration," Nature Communications, Nature, vol. 14(1), pages 1-15, December.
    2. Osorio-Mora, Alan & Saldanha-da-Gama, Francisco & Toth, Paolo, 2025. "A risk-averse latency location-routing problem with stochastic travel times," European Journal of Operational Research, Elsevier, vol. 321(3), pages 837-850.
    3. 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.
    4. Huang, Sen & Liu, Kanglin & Zhang, Zhi-Hai, 2023. "Column-and-constraint-generation-based approach to a robust reverse logistic network design for bike sharing," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 90-118.
    5. Zhixue Liu & Shukun Wang & Yanfeng Ouyang, 2017. "Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions," Energies, MDPI, vol. 10(11), pages 1-18, November.
    6. Yin, Jiateng & Yang, Lixing & Tang, Tao & Gao, Ziyou & Ran, Bin, 2017. "Dynamic passenger demand oriented metro train scheduling with energy-efficiency and waiting time minimization: Mixed-integer linear programming approaches," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 182-213.
    7. 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.
    8. 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).
    9. Wang, Yong & Peng, Shouguo & Zhou, Xuesong & Mahmoudi, Monirehalsadat & Zhen, Lu, 2020. "Green logistics location-routing problem with eco-packages," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    10. Gao, Chang & Lin, Xi & He, Fang & Tang, Xindi, 2024. "Online relocating and matching of ride-hailing services: A model-based modular approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    11. 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.
    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. Nader Azad & Elkafi Hassini, 2019. "A Benders Decomposition Method for Designing Reliable Supply Chain Networks Accounting for Multimitigation Strategies and Demand Losses," Transportation Science, INFORMS, vol. 53(5), pages 1287-1312, September.
    2. Zhang, Ying & Qi, Mingyao & Lin, Wei-Hua & Miao, Lixin, 2015. "A metaheuristic approach to the reliable location routing problem under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 90-110.
    3. Azad, Nader & Hassini, Elkafi, 2019. "Recovery strategies from major supply disruptions in single and multiple sourcing networks," European Journal of Operational Research, Elsevier, vol. 275(2), pages 481-501.
    4. Albareda-Sambola, Maria & Landete, Mercedes & Monge, Juan F. & Sainz-Pardo, José L., 2017. "Introducing capacities in the location of unreliable facilities," European Journal of Operational Research, Elsevier, vol. 259(1), pages 175-188.
    5. 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.
    6. Fahimnia, Behnam & Jabbarzadeh, Armin & Sarkis, Joseph, 2018. "Greening versus resilience: A supply chain design perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 129-148.
    7. 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).
    8. Albareda-Sambola, Maria & Hinojosa, Yolanda & Puerto, Justo, 2015. "The reliable p-median problem with at-facility service," European Journal of Operational Research, Elsevier, vol. 245(3), pages 656-666.
    9. 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.
    10. 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.
    11. 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.
    12. Mengshi Lu & Lun Ran & Zuo-Jun Max Shen, 2015. "Reliable Facility Location Design Under Uncertain Correlated Disruptions," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 445-455, October.
    13. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    14. Xie, Siyang & An, Kun & Ouyang, Yanfeng, 2019. "Planning facility location under generally correlated facility disruptions: Use of supporting stations and quasi-probabilities," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 115-139.
    15. 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.
    16. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    17. 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.
    18. Asefeh Hasani Goodarzi & Seyed Hessameddin Zegordi & Gülgün Alpan & Isa Nakhai Kamalabadi & Ali Husseinzadeh Kashan, 2021. "Reliable cross-docking location problem under the risk of disruptions," Operational Research, Springer, vol. 21(3), pages 1569-1612, September.
    19. Marianov, Vladimir & Eiselt, H.A., 2024. "Fifty Years of Location Theory - A Selective Review," European Journal of Operational Research, Elsevier, vol. 318(3), pages 701-718.
    20. 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.

    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:inm:ortrsc:v:50:y:2016:i:3:p:1128-1138. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.