Reliable Capacitated Facility Location Problem Considering Maximal Covering

Authors: Mehdi Seifbarghy, Sajjad Jalali, Seyed Habib A. Rahmati

Abstract:

This paper provides a framework in order to incorporate reliability issue as a sign of disruption in distribution systems and partial covering theory as a response to limitation in coverage radios and economical preferences, simultaneously into the traditional literatures of capacitated facility location problems. As a result we develop a bi-objective model based on the discrete scenarios for expected cost minimization and demands coverage maximization through a three echelon supply chain network by facilitating multi-capacity levels for provider side layers and imposing gradual coverage function for distribution centers (DCs). Additionally, in spite of objectives aggregation for solving the model through LINGO software, a branch of LP-Metric method called Min- Max approach is proposed and different aspects of corresponds model will be explored.

Keywords: Reliability Cost, Partial Covering, LP-Metric

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1070775

References:

[1] D.N.P. Murthy, O. Solem b, T. Roren, "Product warranty logistics: Issues and challenges--, European Journal of Operational Research Vol. 156, pp. 110-126, 2004.
[2] Balinski, M.L (1965), "Integer programming: methods, uses, computation", Management science 12, 253-313.
[3] Melo.M, Nickel.S, Saldanha-da-Gama.F, "Facility location and supply chain management - A review", European Journal of Operational Research 196, 401-412, 2009.
[4] Langevin,A. Riopel, D., Logistics systems: design and optimization, Springer (2005).
[5] Snyder, L.V., Daskin, M.S., "Reliability models for facility location: the expected failure cost case", Transportation Science 39 (3), 400-416, 2005.
[6] ReVelle, C., Hogan, K., "The maximum availability location problem", Transportation Science 23, 192-200, 1989.
[7] Shen.Z, Zhan.L, Zhang.J, "The Reliable Facility Location Problem: Formulations, Heuristics and Approximation Algorithms", Informs on journal on computing (2010).
[8] Gade D, Pohl EA, "Sample average approximation applied to the capacitated-facilities location problem with unreliable facilities", Proc. IMechE, Vol. 223, part O: J. Risk & Reliability, 2009.
[9] J.Lee, Y.Lee, "Tabu based heuristics for the generalized hierarchical covering location problem", Computers & Industrial Engineering (2010).
[10] Amiri, "Designing a distribution network in a supply chain system: Formulation and efficient solution procedure--, European Journal of Operational Research 171 (2006) 567-576.
[11] O.Berman, Z.Drezner, D.Krass, "Generalized coverage: New developments in covering location models", Computers &OperationsResearch37(2010)1675-1687.
[12] M. J. Asgharpour, "Multi-criteria decision making", (6th ed.), Iran: Tehran University Press, 2009.