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Reliable capacitated facility location problem with service levels

Author

Listed:
  • José A. Santiváñez

    (Universidad del Turabo)

  • Héctor J. Carlo

    (University of Puerto Rico – Mayagüez)

Abstract

This study is concerned with a generalized version of the reliable capacitated facility location problem that guarantees a minimum level of service level in terms of satisfied demands under correlated facility disruptions with uncertain joint distribution. A linear mixed integer formulation for the generalized problem is presented and shown to correspond with the worst-case (distributionally robust) problem when the service-level function is submodular on the disruption scenarios. Managerial insights, including the effect of service-level parameters on optimal solutions, are presented based on experimental results. It is concluded that the proposed model may be used to design supply chain networks with the same expected total cost than the traditional reliable capacitated facility location problem, but with an improved total expected service level.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:eurjtl:v:7:y:2018:i:4:d:10.1007_s13676-018-0125-z
    DOI: 10.1007/s13676-018-0125-z
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    References listed on IDEAS

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    Cited by:

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    2. Arash Gourtani & Tri-Dung Nguyen & Huifu Xu, 2020. "A distributionally robust optimization approach for two-stage facility location problems," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 8(2), pages 141-172, June.
    3. 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.
    4. Hacardiaux, Thomas & Defryn, Christof & Tancrez, Jean-Sébastien & Verdonck, Lotte, 2020. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Thomas Hacardiaux & Christof Defryn & Jean-Sébastien Tancrez & Lotte Verdonck, 2022. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 121-153, March.
    6. Zamani, Shokufeh & Arkat, Jamal & Niaki, Seyed Taghi Akhavan, 2022. "Service interruption and customer withdrawal in the congested facility location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).

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