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An Efficient Approach for Solving Reliable Facility Location Models

Robert Aboolian, Tingting Cui, Zuo-Jun Max Shen

INFORMS Journal on Computing · 2013 · Volume 25 · Issue 4

DOI: 10.1287/ijoc.1120.0534

Abstract

We consider reliable facility location models in which facilities are subject to unexpected failures, and customers may be reassigned to facilities other than their regular facilities. The objective is to minimize the total expected costs in normal and failure scenarios. We allow facilities to have different failure rates and do not limit the number of facilities that might be assigned to a customer. Lower bounds for reliable uncapacitated fixed-charge location problem ( RUFLP ) are derived and used to introduce a class of efficient algorithms for solving the RUFLP problem.

Keywords

facility location, reliability, mixed integer program, cutting planes, heuristics, supply chain disruption

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