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Optimizing strategic planning in median systems subject to uncertain disruption and gradual recovery

In: Operations Research Proceedings 2011

Author

Listed:
  • Chaya Losada

    (Nanzan University)

  • Atsuo Suzuki

    (Nanzan University)

Abstract

This paper addresses the capacity planning of facilities in median systems at an early stage so that, if potential disruptions arise and forecast demand is misestimated, overall costs are minimized.We consider some realistic features such as uncertainty in the magnitude, time and location of disruptions as well as gradual recovery of disrupted facilities over time. The proposed two-stage stochastic linear program (2-SLP) is solved in a computationally efficient way via an enhanced implementation of the stochastic decomposition method. To ascertain the quality of the solutions obtained some deterministic bounds are calculated.

Suggested Citation

  • Chaya Losada & Atsuo Suzuki, 2012. "Optimizing strategic planning in median systems subject to uncertain disruption and gradual recovery," Operations Research Proceedings, in: Diethard Klatte & Hans-Jakob Lüthi & Karl Schmedders (ed.), Operations Research Proceedings 2011, edition 127, pages 293-298, Springer.
    • Handle: RePEc:spr:oprchp:978-3-642-29210-1_47
    DOI: 10.1007/978-3-642-29210-1_47
    as

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