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An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions

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  • Jiguang Wang

    (School of Economics & Management, Shanxi University, Taiyuan 030006, China)

  • Yucai Wu

    (School of Economics & Management, Shanxi University, Taiyuan 030006, China)

Abstract

The classical location models implicitly assume that the facilities, once built, will always operate as planned. However, some of the facilities may become unavailable from time to time due to disruptions which highlight the urgent need to effectively manage supply chain disruptions in spite of their low probability of occurrence. Therefore, it is critical to take account of disruptions when designing a resilient supply chain network so that it performs well as a whole even after an accidental disruption. In this paper, a stylized facility location problem is considered in a continuous plane which is solved through an improved Voronoi-diagram-based algorithm under disruption risks. The research problem is to minimize the total cost in normal and failure scenarios. Furthermore, the impact of misestimating the disruption probability is also investigated. The results numerically show that although the estimated disruption probability has a significant impact on the facilities configuration, it has a minor impact on the total quantity of facilities and the expected total cost. Therefore, this paper proposes that the decision-maker should moderately overestimate disruption risk based on the “pessimistic principle”. Finally, the conclusion considers managerial insights and proposes potential areas for future research.

Suggested Citation

  • Jiguang Wang & Yucai Wu, 2018. "An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions," Sustainability, MDPI, vol. 10(9), pages 1-13, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3099-:d:166793
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    References listed on IDEAS

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    Cited by:

    1. Jiguang Wang & Yucai Wu, 2019. "A Continuous Approximation Approach Based on Regular Hexagon Partition for the Facility Location Problem under Disruptions Risk," Complexity, Hindawi, vol. 2019, pages 1-12, February.
    2. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    3. Xiao Zhao & Xuhui Xia & Lei Wang & Guodong Yu, 2018. "Risk-Averse Facility Location for Green Closed-Loop Supply Chain Networks Design under Uncertainty," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    4. 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).

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