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Reliable facility location design with round-trip transportation under imperfect information part II: A continuous model

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  • Yun, Lifen
  • Fan, Hongqiang
  • Li, Xiaopeng

Abstract

The Part I paper (Yun et al., 2019) of this study developed a discrete model and a customized Lagrangian relaxation algorithm for the reliable problem of facility locations considering round-trip transportation when customers are not aware of facility states in real time until they visit them on site. Since the investigated problem is an NP-hard problem, large-scale instances of this problem may not be solved efficiently by the discrete model. To address this issue, this paper proposes a counterpart continuous model to solve large-scale instances of the investigated problem. The continuous model assumes that all the settings are continuous and adopts the continuum approximation (CA) technique to obtain a near-optimum solution to this investigated problem. The CA technique also reveals theoretical insights into solution structures of each sub-problem on a customer's pattern of visiting facilities on a homogeneous plane. Numerical experiments find that the continuous model with the CA technique has superior computational efficiency for large-scale instances. The results of the case studies indicate that the proposed continuous model can obtain a near-optimum solution for the investigated location problem with heterogeneous settings and has a robust performance.

Suggested Citation

  • Yun, Lifen & Fan, Hongqiang & Li, Xiaopeng, 2019. "Reliable facility location design with round-trip transportation under imperfect information part II: A continuous model," Transportation Research Part B: Methodological, Elsevier, vol. 124(C), pages 44-59.
    • Handle: RePEc:eee:transb:v:124:y:2019:i:c:p:44-59
    DOI: 10.1016/j.trb.2019.04.002
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    References listed on IDEAS

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    Cited by:

    1. Meng, Lingpeng & Wang, Xudong & He, Junliang & Han, Chuanfeng & Hu, Shaolong, 2023. "A two-stage chance constrained stochastic programming model for emergency supply distribution considering dynamic uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    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).

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