A capacitated facility location problem with constrained backlogging probabilities

One of the assumptions of the capacitated facility location problem (CFLP) is that demand is known and fixed. Most often, this is not the case when managers take some strategic decisions such as locating facilities and assigning demand points to those facilities. In this paper we consider demand as...

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Bibliographic Details
Published in:International journal of production research 2007-11, Vol.45 (21), p.5117-5134
Main Authors: Silva, F. J. F., de la Figuera, D. S.
Format: Article
Language:English
Subjects:
Applied sciences
Exact sciences and technology
Greedy heuristics
Heuristic
Inventory control, production control. Distribution
Location
Logistics
Operational research and scientific management
Operational research. Management science
Probability
Queuing
Queuing theory. Traffic theory
Simulation
Site selection
Stochastic models
Studies
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Summary:One of the assumptions of the capacitated facility location problem (CFLP) is that demand is known and fixed. Most often, this is not the case when managers take some strategic decisions such as locating facilities and assigning demand points to those facilities. In this paper we consider demand as stochastic and we model each of the facilities as an independent queue. Stochastic models of manufacturing systems and deterministic location models are put together in order to obtain a formula for the backlogging probability at a potential facility location. Several solution techniques have been proposed to solve the CFLP. One of the most recently proposed heuristics, a reactive greedy adaptive search procedure, is implemented in order to solve the model formulated. We present some computational experiments in order to evaluate the heuristics' performance and to illustrate the use of this new formulation for the CFLP. The paper finishes with a simple simulation exercise.
ISSN:0020-7543
1366-588X
DOI:10.1080/00207540600823195