A Dual-Based Procedure for Stochastic Facility Location
François V. Louveaux, D. Peeters
Operations Research · 1992 · Volume 40 · Issue 3
Abstract
In this paper, we study how the uncapacitated facility location problem is transformed into a two-stage stochastic program with recourse when uncertainty on demand, selling prices, production and transportation costs are introduced. We then present a dual-based procedure and indicate how the dual-descent and primal-dual adjustment procedures proposed by D. Erlenkotter (1978) in the static case can be made monotonically improving in the stochastic case. Results of computer experiments are reported.
Keywords
facilities/equipment planning, location, stochastic: a dual-based algorithm
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