Locating Facilities in the Presence of Disruptions and Incomplete Information
Identifieur interne : 000C82 ( Main/Exploration ); précédent : 000C81; suivant : 000C83Locating Facilities in the Presence of Disruptions and Incomplete Information
Auteurs : Oded Berman [Canada] ; Dmitry Krass [Canada] ; Mozart B. C. Menezes [Espagne]Source :
- Decision Sciences [ 0011-7315 ] ; 2009-11.
English descriptors
Abstract
In this article, we analyze a location model where facilities may be subject to disruptions. Customers do not have advance information about whether a given facility is operational or not, and thus may have to visit several facilities before finding an operational one. The objective is to locate a set of facilities to minimize the total expected cost of customer travel. We decompose the total cost into travel, reliability, and information components. This decomposition allows us to put a value on the advance information about the states of facilities and compare it to the reliability and travel cost components, which allows a decision maker to evaluate which part of the system would benefit the most from improvements. The structure of optimal solutions is analyzed, with two interesting effects identified: facility centralization and co‐location; both effects appear to be stronger than in the complete information case, where the status of each facility is known in advance.
Url:
DOI: 10.1111/j.1540-5915.2009.00253.x
Affiliations:
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