IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v153y2021ics1366554521002088.html
   My bibliography  Save this article

Locating facilities with resiliency to capacity failures and correlated demand uncertainty

Author

Listed:
  • Lu, Xiaohan
  • Cheng, Chun

Abstract

This paper studies a capacitated facility location problem under disruptions, where disruption risk not only diminishes facilities’ capacity partially or completely but also affects customers’ demand patterns. We use a budgeted uncertainty set to simultaneously capture facilities’ disruptions and customers’ uncertain demand caused by the failures of nearby facilities. Three two-stage robust optimization formulations with different objectives and performance bounds are built to model the problem. Both column-and-constraint generation algorithm and Benders decomposition method are implemented to solve the models. Numerical tests are conducted to study the impact of disruption correlated demand uncertainty and the performance of models and algorithms.

Suggested Citation

  • Lu, Xiaohan & Cheng, Chun, 2021. "Locating facilities with resiliency to capacity failures and correlated demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    • Handle: RePEc:eee:transe:v:153:y:2021:i:c:s1366554521002088
    DOI: 10.1016/j.tre.2021.102444
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554521002088
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2021.102444?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. Zhaowei Hao & Long He & Zhenyu Hu & Jun Jiang, 2020. "Robust Vehicle Pre‐Allocation with Uncertain Covariates," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 955-972, April.
    2. Xie, Siyang & Ouyang, Yanfeng, 2019. "Reliable service systems design under the risk of network access failures," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 1-13.
    3. 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.
    4. 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.
    5. David Simchi‐Levi & He Wang & Yehua Wei, 2018. "Increasing Supply Chain Robustness through Process Flexibility and Inventory," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1476-1491, August.
    6. Matthews, Logan R. & Gounaris, Chrysanthos E. & Kevrekidis, Ioannis G., 2019. "Designing networks with resiliency to edge failures using two-stage robust optimization," European Journal of Operational Research, Elsevier, vol. 279(3), pages 704-720.
    7. Balcik, Burcu & Yanıkoğlu, İhsan, 2020. "A robust optimization approach for humanitarian needs assessment planning under travel time uncertainty," European Journal of Operational Research, Elsevier, vol. 282(1), pages 40-57.
    8. Mohammadi, Mehrdad & Jula, Payman & Tavakkoli-Moghaddam, Reza, 2019. "Reliable single-allocation hub location problem with disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 90-120.
    9. Veronica Guerrieri & Guido Lorenzoni & Ludwig Straub & Iván Werning, 2022. "Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages?," American Economic Review, American Economic Association, vol. 112(5), pages 1437-1474, May.
    10. Wenjun Ni & Jia Shu & Miao Song, 2018. "Location and Emergency Inventory Pre†Positioning for Disaster Response Operations: Min†Max Robust Model and a Case Study of Yushu Earthquake," Production and Operations Management, Production and Operations Management Society, vol. 27(1), pages 160-183, January.
    11. Alper Atamtürk & Muhong Zhang, 2007. "Two-Stage Robust Network Flow and Design Under Demand Uncertainty," Operations Research, INFORMS, vol. 55(4), pages 662-673, August.
    12. Saif, Ahmed & Delage, Erick, 2021. "Data-driven distributionally robust capacitated facility location problem," European Journal of Operational Research, Elsevier, vol. 291(3), pages 995-1007.
    13. Zhalechian, M. & Torabi, S. Ali & Mohammadi, M., 2018. "Hub-and-spoke network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 20-43.
    14. Nader Azizi, 2019. "Managing facility disruption in hub-and-spoke networks: formulations and efficient solution methods," Annals of Operations Research, Springer, vol. 272(1), pages 159-185, January.
    15. Wang, Xinfang (Jocelyn) & Paul, Jomon A., 2020. "Robust optimization for hurricane preparedness," International Journal of Production Economics, Elsevier, vol. 221(C).
    16. 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.
    17. Cheng, Chun & Adulyasak, Yossiri & Rousseau, Louis-Martin, 2021. "Robust facility location under demand uncertainty and facility disruptions," Omega, Elsevier, vol. 103(C).
    18. Yongzhen Li & Jia Shu & Miao Song & Jiawei Zhang & Huan Zheng, 2017. "Multisourcing Supply Network Design: Two-Stage Chance-Constrained Model, Tractable Approximations, and Computational Results," INFORMS Journal on Computing, INFORMS, vol. 29(2), pages 287-300, May.
    19. Paul, Jomon A. & Wang, Xinfang (Jocelyn), 2019. "Robust location-allocation network design for earthquake preparedness," Transportation Research Part B: Methodological, Elsevier, vol. 119(C), pages 139-155.
    20. 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.
    21. An, Yu & Zeng, Bo & Zhang, Yu & Zhao, Long, 2014. "Reliable p-median facility location problem: two-stage robust models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 54-72.
    22. 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.
    23. Alizadeh, Morteza & Amiri-Aref, Mehdi & Mustafee, Navonil & Matilal, Sumohon, 2019. "A robust stochastic Casualty Collection Points location problem," European Journal of Operational Research, Elsevier, vol. 279(3), pages 965-983.
    24. 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.
    25. 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.
    26. 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.
    27. Lawrence V. Snyder & Zümbül Atan & Peng Peng & Ying Rong & Amanda J. Schmitt & Burcu Sinsoysal, 2016. "OR/MS models for supply chain disruptions: a review," IISE Transactions, Taylor & Francis Journals, vol. 48(2), pages 89-109, February.
    28. 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.
    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. Saldanha-da-Gama, Francisco, 2022. "Facility Location in Logistics and Transportation: An enduring relationship," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    2. Alikhani, Reza & Eskandarpour, Majid & Jahani, Hamed, 2023. "Collaborative distribution network design with surging demand and facility disruptions," International Journal of Production Economics, Elsevier, vol. 262(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. Cheng, Chun & Yu, Qinxiao & Adulyasak, Yossiri & Rousseau, Louis-Martin, 2024. "Distributionally robust facility location with uncertain facility capacity and customer demand," Omega, Elsevier, vol. 122(C).
    2. 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).
    3. Cheng, Chun & Adulyasak, Yossiri & Rousseau, Louis-Martin, 2021. "Robust facility location under demand uncertainty and facility disruptions," Omega, Elsevier, vol. 103(C).
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. Yongzhen Li & Xueping Li & Jia Shu & Miao Song & Kaike Zhang, 2022. "A General Model and Efficient Algorithms for Reliable Facility Location Problem Under Uncertain Disruptions," INFORMS Journal on Computing, INFORMS, vol. 34(1), pages 407-426, January.
    10. José A. Santiváñez & Héctor J. Carlo, 2018. "Reliable capacitated facility location problem with service levels," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 7(4), pages 315-341, December.
    11. Aghajani, Mojtaba & Ali Torabi, S. & Altay, Nezih, 2023. "Resilient relief supply planning using an integrated procurement-warehousing model under supply disruption," Omega, Elsevier, vol. 118(C).
    12. 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.
    13. Basciftci, Beste & Ahmed, Shabbir & Shen, Siqian, 2021. "Distributionally robust facility location problem under decision-dependent stochastic demand," European Journal of Operational Research, Elsevier, vol. 292(2), pages 548-561.
    14. Alikhani, Reza & Torabi, S.Ali & Altay, Nezih, 2021. "Retail supply chain network design with concurrent resilience capabilities," International Journal of Production Economics, Elsevier, vol. 234(C).
    15. 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.
    16. Jia, Chuanzhou & Zhang, Chi & Li, Yan-Fu & Li, Quan-Lin, 2023. "Joint pre- and post-disaster planning to enhance the resilience of critical infrastructures," Reliability Engineering and System Safety, Elsevier, vol. 231(C).
    17. 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.
    18. 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.
    19. 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).
    20. An, Yu & Zeng, Bo & Zhang, Yu & Zhao, Long, 2014. "Reliable p-median facility location problem: two-stage robust models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 54-72.

    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:transe:v:153:y:2021:i:c:s1366554521002088. 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/600244/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.