Search results for: Demand Uncertainty.

Authors: Karin Kandananond

Abstract:

The nature of consumer products causes the difficulty in forecasting the future demands and the accuracy of the forecasts significantly affects the overall performance of the supply chain system. In this study, two data mining methods, artificial neural network (ANN) and support vector machine (SVM), were utilized to predict the demand of consumer products. The training data used was the actual demand of six different products from a consumer product company in Thailand. The results indicated that SVM had a better forecast quality (in term of MAPE) than ANN in every category of products. Moreover, another important finding was the margin difference of MAPE from these two methods was significantly high when the data was highly correlated.

Keywords: Artificial neural network (ANN), Bullwhip effect, Consumer products, Demand forecasting, Supply chain, Support vector machine (SVM).

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Authors: Josip Visković, Ana Rimac Smiljanić, Ines Ivić

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Housing loans play an important role in CEE countries’ economies. This fact is based on their share in total loans to households and their importance for economic activity and growth in CEE countries. Therefore, it is important to find out key determinants of housing loans demand in these countries. The aim of this study is to research and analyze the determinants of the demand for housing loans in Croatia. In this regard, the effect of economic activity, loan terms and real estate prices were analyzed. Also, the aim of this study is to find out what motivates people to take housing loans. Therefore, primarily empirical study was conducted among the Croatian residents. The results show that demand for housing loans is positively affected by economic growth, higher personal income and flexible loan terms, while it is negatively affected by interest rate rise.

Keywords: CEE countries, Croatia, demand determinants, housing loans.

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Authors: Abdel Hamid Ajbar, Emad Ali

Abstract:

Saudi Arabia is an arid country which depends on costly desalination plants to satisfy the growing residential water demand. Prediction of water demand is usually a challenging task because the forecast model should consider variations in economic progress, climate conditions and population growth. The task is further complicated knowing that Mecca city is visited regularly by large numbers during specific months in the year due to religious occasions. In this paper, a neural networks model is proposed to handle the prediction of the monthly and yearly water demand for Mecca city, Saudi Arabia. The proposed model will be developed based on historic records of water production and estimated visitors- distribution. The driving variables for the model include annuallyvarying variables such as household income, household density, and city population, and monthly-varying variables such as expected number of visitors each month and maximum monthly temperature.

Keywords: Water demand forecast; Neural Networks model; water resources management; Saudi Arabia.

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Authors: Shobha.K.R., K. Rajanikanth

Abstract:

An on-demand routing protocol for wireless ad hoc networks is one that searches for and attempts to discover a route to some destination node only when a sending node originates a data packet addressed to that node. In order to avoid the need for such a route discovery to be performed before each data packet is sent, such routing protocols must cache routes previously discovered. This paper presents an analysis of the effect of intelligent caching in a non clustered network, using on-demand routing protocols in wireless ad hoc networks. The analysis carried out is based on the Dynamic Source Routing protocol (DSR), which operates entirely on-demand. DSR uses the cache in every node to save the paths that are learnt during route discovery procedure. In this implementation, caching these paths only at intermediate nodes and using the paths from these caches when required is tried. This technique helps in storing more number of routes that are learnt without erasing the entries in the cache, to store a new route that is learnt. The simulation results on DSR have shown that this technique drastically increases the available memory for caching the routes discovered without affecting the performance of the DSR routing protocol in any way, except for a small increase in end to end delay.

Keywords: Caching, DSR, on demand routing, MANET.

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Authors: M. Naserian, M. Jooshaki, M. Fotuhi-Firuzabad, M. Hossein Mohammadi Sanjani, A. Oraee

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In recent years, the development of communication infrastructure and smart meters have facilitated the utilization of demand-side resources which can enhance stability and economic efficiency of power systems. Direct load control programs can play an important role in the utilization of demand-side resources in the residential sector. However, investments required for installing control equipment can be a limiting factor in the development of such demand response programs. Thus, selection of consumers with higher potentials is crucial to the success of a direct load control program. Heating, ventilation, and air conditioning (HVAC) systems, which due to the heat capacity of buildings feature relatively high flexibility, make up a major part of household consumption. Considering that the consumption of HVAC systems depends highly on the ambient temperature and bearing in mind the high investments required for control systems enabling direct load control demand response programs, in this paper, a solution is presented to uncover consumers with high air conditioner demand among a large number of consumers and to measure the demand response potential of such consumers. This can pave the way for estimating the investments needed for the implementation of direct load control programs for residential HVAC systems and for estimating the demand response potentials in a distribution system. In doing so, we first cluster consumers into several groups based on the correlation coefficients between hourly consumption data and hourly temperature data using K-means algorithm. Then, by applying a recent algorithm to the hourly consumption and temperature data, consumers with high air conditioner consumption are identified. Finally, demand response potential of such consumers is estimated based on the equivalent desired temperature setpoint changes.

Keywords: Data-driven analysis, demand response, direct load control, HVAC system.

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Authors: Y. Wu

Abstract:

Today-s business has inevitably been set in the global supply chain management environment. International transportation has never played such an important role in the global supply chain network, because movement of shipments from one country to another tends to be more frequent than ever before. This paper studies international transportation problems experienced by an international transportation company. Because of the limited fleet capacity, the transportation company has to hire additional trucks from two countries in advance. However, customer-s shipment information is uncertain, and decisions have to be made before accurate information can be obtained. This paper proposes a stochastic mixed 0-1 programming model to solve the international transportation problems under uncertain demand. A series of experiments demonstrate the effectiveness of the proposed stochastic model.

Keywords: Global supply chain management, international transportation, stochastic programming.

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Authors: J. Seetaram, P. Satish Kumar

Abstract:

Mobile Adhoc Networks (MANETs) are infrastructure-less, dynamic network of collections of wireless mobile nodes communicating with each other without any centralized authority. A MANET is a mobile device of interconnections through wireless links, forming a dynamic topology. Routing protocols have a big role in data transmission across a network. Routing protocols, two major classifications are unipath and multipath. This study evaluates performance of an on-demand multipath routing protocol named Adhoc On-demand Multipath Distance Vector routing (AOMDV). This study proposes Energy Aware AOMDV (EAAOMDV) an extension of AOMDV which decreases energy consumed on a route.

Keywords: Mobile Adhoc Network (MANET), unipath, multipath, Adhoc On-demand Multipath Distance Vector routing (AOMDV).

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Authors: D. S. Gomes, A. T. Silva

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Analysis of the uncertainty quantification related to nuclear safety margins applied to the nuclear reactor is an important concept to prevent future radioactive accidents. The nuclear fuel performance code may involve the tolerance level determined by traditional deterministic models producing acceptable results at burn cycles under 62 GWd/MTU. The behavior of nuclear fuel can simulate applying a series of material properties under irradiation and physics models to calculate the safety limits. In this study, theoretical predictions of nuclear fuel failure under transient conditions investigate extended radiation cycles at 75 GWd/MTU, considering the behavior of fuel rods in light-water reactors under reactivity accident conditions. The fuel pellet can melt due to the quick increase of reactivity during a transient. Large power excursions in the reactor are the subject of interest bringing to a treatment that is known as the Fuchs-Hansen model. The point kinetic neutron equations show similar characteristics of non-linear differential equations. In this investigation, the multivariate logistic regression is employed to a probabilistic forecast of fuel failure. A comparison of computational simulation and experimental results was acceptable. The experiments carried out use the pre-irradiated fuels rods subjected to a rapid energy pulse which exhibits the same behavior during a nuclear accident. The propagation of uncertainty utilizes the Wilk's formulation. The variables chosen as essential to failure prediction were the fuel burnup, the applied peak power, the pulse width, the oxidation layer thickness, and the cladding type.

Keywords: Logistic regression, reactivity-initiated accident, safety margins, uncertainty propagation.

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Authors: Okay Gunes

Abstract:

In this article, a new method is proposed for the measuring of well-being inequality through a model composed of superimposing satisfaction waves. The displacement of households’ satisfactory state (i.e. satisfaction) is defined in a satisfaction string. The duration of the satisfactory state for a given period is measured in order to determine the relationship between utility and total satisfactory time, itself dependent on the density and tension of each satisfaction string. Thus, individual cardinal total satisfaction values are computed by way of a one-dimensional form for scalar sinusoidal (harmonic) moving wave function, using satisfaction waves with varying amplitudes and frequencies which allow us to measure wellbeing inequality. One advantage to using satisfaction waves is the ability to show that individual utility and consumption amounts would probably not commute; hence, it is impossible to measure or to know simultaneously the values of these observables from the dataset. Thus, we crystallize the problem by using a Heisenberg-type uncertainty resolution for self-adjoint economic operators. We propose to eliminate any estimation bias by correlating the standard deviations of selected economic operators; this is achieved by replacing the aforementioned observed uncertainties with households’ perceived uncertainties (i.e. corrected standard deviations) obtained through the logarithmic psychophysical law proposed by Weber and Fechner.

Keywords: Heisenberg Uncertainty Principle, superimposing satisfaction waves, Weber–Fechner law, well-being inequality.

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Authors: Sukhveer Singh, Sandeep Singh

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A bi-objective fuzzy transportation problem with the objectives to minimize the total fuzzy cost and fuzzy time of transportation without according priorities to them is considered. To the best of our knowledge, there is no method in the literature to find efficient solutions of the bi-objective transportation problem under uncertainty. In this paper, a bi-objective transportation problem in an uncertain environment has been formulated. An algorithm has been proposed to find efficient solutions of the bi-objective transportation problem under uncertainty. The proposed algorithm avoids the degeneracy and gives the optimal solution faster than other existing algorithms for the given uncertain transportation problem.

Keywords: Transportation problem, efficient solution, ranking function, fuzzy transportation problem.

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Authors: I. Khutsishvili, G. Sirbiladze, B. Ghvaberidze

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This work proposes a fuzzy methodology to support the investment decisions. While choosing among competitive investment projects, the methodology makes ranking of projects using the new aggregation OWA operator – AsPOWA, presented in the environment of possibility uncertainty. For numerical evaluation of the weighting vector associated with the AsPOWA operator the mathematical programming problem is constructed. On the basis of the AsPOWA operator the projects’ group ranking maximum criteria is constructed. The methodology also allows making the most profitable investments into several of the project using the method developed by the authors for discrete possibilistic bicriteria problems. The article provides an example of the investment decision-making that explains the work of the proposed methodology.

Keywords: Expert evaluations, investment decision making, OWA operator, possibility uncertainty.

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Authors: A. Azadeh, Z. Raoofi

Abstract:

Natural gas, as one of the most important sources of energy for many of the industrial and domestic users all over the world, has a complex, huge supply chain which is in need of heavy investments in all the phases of exploration, extraction, production, transportation, storage and distribution. The main purpose of supply chain is to meet customers’ need efficiently and with minimum cost. In this study, with the aim of minimizing economic costs, different levels of natural gas supply chain in the form of a multi-echelon, multi-period fuzzy linear programming have been modeled. In this model, different constraints including constraints on demand satisfaction, capacity, input/output balance and presence/absence of a path have been defined. The obtained results suggest efficiency of the recommended model in optimal allocation and reduction of supply chain costs.

Keywords: Cost Approach, Fuzzy Theory, Linear Programming, Natural Gas Supply Chain.

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Authors: Paramet Nualmuenwai, Chutima Prommak

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This paper presents the IP traffic analysis. The traffic was collected from the network of Suranaree University of Technology using the software based on the Simple Network Management Protocol (SNMP). In particular, we analyze the distribution of the aggregated traffic during the hours of peak load and light load. The traffic profiles including the parameters described the traffic distributions were derived. From the statistical analysis applying three different methods, including the Kolmogorov Smirnov test, Anderson Darling test, and Chi-Squared test, we found that the IP traffic distribution is a non-normal distribution and the distributions during the peak load and the light load are different. The experimental study and analysis show high uncertainty of the IP traffic.

Keywords: IP traffic analysis, IP traffic distribution, Traffic uncertainty

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Authors: A. Majeed, P. Ali

Abstract:

Before designing an electrical system, the estimation of load is necessary for unit sizing and demand-generation balancing. The system could be a stand-alone system for a village or grid connected or integrated renewable energy to grid connection, especially as there are non–electrified villages in developing countries. In the classical model, the energy demand was found by estimating the household appliances multiplied with the amount of their rating and the duration of their operation, but in this paper, information exists for electrified villages could be used to predict the demand, as villages almost have the same life style. This paper describes a method used to predict the average energy consumed in each two months for every consumer living in a village by Artificial Neural Network (ANN). The input data are collected using a regional survey for samples of consumers representing typical types of different living, household appliances and energy consumption by a list of information, and the output data are collected from administration office of Piramagrun for each corresponding consumer. The result of this study shows that the average demand for different consumers from four villages in different months throughout the year is approximately 12 kWh/day, this model estimates the average demand/day for every consumer with a mean absolute percent error of 11.8%, and MathWorks software package MATLAB version 7.6.0 that contains and facilitate Neural Network Toolbox was used.

Keywords: Artificial neural network, load estimation, regional survey, rural electrification.

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Authors: Farag Azzedin, Ahmad Ridha, Ali Rizvi

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Trust management is one of the drawbacks in Peer-to-Peer (P2P) system. Lack of centralized control makes it difficult to control the behavior of the peers. Reputation system is one approach to provide trust assessment in P2P system. In this paper, we use fuzzy logic to model trust in a P2P environment. Our trust model combines first-hand (direct experience) and second-hand (reputation)information to allow peers to represent and reason with uncertainty regarding other peers' trustworthiness. Fuzzy logic can help in handling the imprecise nature and uncertainty of trust. Linguistic labels are used to enable peers assign a trust level intuitively. Our fuzzy trust model is flexible such that inference rules are used to weight first-hand and second-hand accordingly.

Keywords: P2P Systems; Trust, Reputation, Fuzzy Logic.

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Authors: Eva Kotlánová

Abstract:

After recession that began in 2007 in the United States and subsequently spilled over the Europe we could expect recovery of economic growth. According to the last estimation of economic progress of European countries, this recovery is not strong enough. Among others, it will depend on economic policy, where and in which way, the economic indicators will proceed. Economic theories postulate that the economic subjects prefer stably, continual economic policy without repeated and strong fluctuations. This policy is perceived as support of economic growth. Mostly in crises period, when the government must cope with consequences of recession, the economic policy becomes unpredictable for many subjects and economic policy uncertainty grows, which have negative influence on economic growth. The aim of this paper is to use panel regression to prove or disprove this hypothesis on the example of five largest European economies in the period 2008–2012.

Keywords: Economic Crises in Europe, Economic Policy, Uncertainty, Panel Analysis Regression.

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Authors: Phoenix Lawhon Isler, John Merson, David Roser

Abstract:

Urban water management in Australia faces increasing pressure to deal with the challenges of droughts, growing population and the climate change uncertainty. Addressing these challenges is an opportunity to incorporate the parallel goals of sustainable water management and climate change adaptation through holistic, non-technical means. This paper presents case studies from Perth and Sydney which show how despite robust adaptation plans and experience, recent efforts to 'drought proof' cities have focused on supply-side measures (i.e. desalination), rather than rethinking how water is used and managing demand. The trend towards desalination as a climate adaptation measure raises questions about the sustainability of urban water futures in Australia.

Keywords: Climate change adaptation, desalination, drought management, sustainable urban water management.

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Authors: Rami A. Maher, Ibraheem K. Ibraheem

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This work presents a comparison study between the state-space and polynomial methods for the design of the robust governor for load frequency control of steam turbine power systems. The robust governor is synthesized using the two approaches and the comparison is extended to include time and frequency domains performance, controller order, and uncertainty representation, weighting filters, optimality and sub-optimality. The obtained results are represented through tables and curves with reasons of similarities and dissimilarities.

Keywords: Robust control, load frequency control, steam turbine, H∞-norm, system uncertainty, load disturbance.

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Authors: Yeqing Guan, Fen Yang

Abstract:

To learn about China-s future energy demand, this paper first proposed GM(1,1) model group based on recursive solutions of parameters estimation, setting up a general solving-algorithm of the model group. This method avoided the problems occurred on the past researches that remodeling, loss of information and large amount of calculation. This paper established respectively all-data-GM(1,1), metabolic GM(1,1) and new information GM (1,1)model according to the historical data of energy consumption in China in the year 2005-2010 and the added data of 2011, then modeling, simulating and comparison of accuracies we got the optimal models and to predict. Results showed that the total energy demand of China will be 37.2221 billion tons of equivalent coal in 2012 and 39.7973 billion tons of equivalent coal in 2013, which are as the same as the overall planning of energy demand in The 12th Five-Year Plan.

Keywords: energy demands, GM(1, 1) model group, least square estimation, prediction

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Authors: M. Khoshab, M. J. Sedigh

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Dynamic systems, which in mathematical point of view are those governed by differential equations, are much more difficult to study and to predict their behavior in comparison with static systems which are governed by algebraic equations. Economical systems such as market are among complicated dynamic systems. This paper tries to adopt a very simple mathematical model for market and to study effect of supply and demand function on behavior of the market while the supply side experiences a lag due to production restrictions.

Keywords: Dynamic System, Lag on Supply Demand, Market Stability, Supply Demand Model.

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Authors: Seiichi Tamagawa, Takao Kawamura, Toshihiko Sasama, Kazunori Sugahara

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Route bus system is one of fundamental transportation device for aged people and students, and has an important role in every province. However, passengers decrease year by year, therefore the authors have developed the system called "Bus-Net" as a web application to sustain the public transport. But there are two problems in Bus-Net. One is the user interface that does not consider the variety of the device, and the other is the path planning system that dose not correspond to the on-demand bus. Then, Bus-Net was improved to be able to utilize the variety of the device, and a new function corresponding to the on-demand bus was developed.

Keywords: Route Bus, Path Planning System, User Interface, Ondemandbus, Reservation system.

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Authors: Chengli Liu, C. K. M. Lee

Abstract:

The tradition competitive newsvendor game assumes decision makers are rational. However, there are behavioral biases when people make decisions, such as loss aversion, mental accounting and overconfidence. Overestimation of a subject’s own performance is one type of overconfidence. The objective of this research is to analyze the impact of the overestimated demand in the newsvendor competitive game with two players. This study builds a competitive newsvendor game model where newsvendors have private information of their demands, which is overestimated. At the same time, demands of each newsvendor forecasted by a third party institution are available. This research shows that the overestimation leads to demand steal effect, which reduces the competitor’s order quantity. However, the overall supply of the product increases due to overestimation. This study illustrates the boundary condition for the overestimated newsvendor to have the equilibrium order drop due to the demand steal effect from the other newsvendor. A newsvendor who has higher critical fractile will see its equilibrium order decrease with the drop of estimation level from the other newsvendor.

Keywords: Bias, competitive newsvendor, Nash equilibrium, overestimation.

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Authors: S. Areerachakul

Abstract:

Nowadays, several techniques such as; Fuzzy Inference System (FIS) and Neural Network (NN) are employed for developing of the predictive models to estimate parameters of water quality. The main objective of this study is to compare between the predictive ability of the Adaptive Neuro-Fuzzy Inference System (ANFIS) model and Artificial Neural Network (ANN) model to estimate the Biochemical Oxygen Demand (BOD) on data from 11 sampling sites of Saen Saep canal in Bangkok, Thailand. The data is obtained from the Department of Drainage and Sewerage, Bangkok Metropolitan Administration, during 2004-2011. The five parameters of water quality namely Dissolved Oxygen (DO), Chemical Oxygen Demand (COD), Ammonia Nitrogen (NH3N), Nitrate Nitrogen (NO3N), and Total Coliform bacteria (T-coliform) are used as the input of the models. These water quality indices affect the biochemical oxygen demand. The experimental results indicate that the ANN model provides a higher correlation coefficient (R=0.73) and a lower root mean square error (RMSE=4.53) than the corresponding ANFIS model.

Keywords: adaptive neuro-fuzzy inference system, artificial neural network, biochemical oxygen demand, surface water.

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Authors: Seyed Mohyeddin Ghodratian, Mehdi Ghassemieh, Mohammad Khanmohammadi

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Excessive ductility demand on shorter piers is a common problem for irregular bridges subjected to strong ground motion. Various techniques have been developed to reduce the likelihood of collapse of bridge due to failure of shorter piers. This paper presents the new approach to improve the seismic behavior of such bridges using Nitinol shape memory alloys (SMAs). Superelastic SMAs have the ability to remain elastic under very large deformation due to martensitic transformation. This unique property leads to enhanced performance of controlled bridge compared with the performance of the reference bridge. To evaluate the effectiveness of the devices, nonlinear time history analysis is performed on a RC single column bent highway bridge using a suite of representative ground motions. The results show that this method is very effective in limiting the ductility demand of shorter pier.

Keywords: bridge, ductility demand, irregularity, shape memory alloy

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Authors: Yu-Chen Lin, Tzong-Yeang Lee, Hung-Chih Shih

Abstract:

The development of sustainable utilization water resources is crucial. The ecological environment and water resources systems form the foundation of the existence and development of the social economy. The urban ecological support system depends on these resources as well. This research studies the vulnerability, criticality, and risk of climate change on water supply and demand in the main administrative district of the Taijiang Area (Tainan City). Based on the two situations set in this paper and various factors (indexes), this research adopts two kinds of weights (equal and AHP) to conduct the calculation and establish the water supply and demand risk map for the target year 2039. According to the risk analysis result, which is based on equal weight, only one district belongs to a high-grade district (Grade 4). Based on the AHP weight, 16 districts belong to a high-grade or higher-grade district (Grades 4 and 5), and from among them, two districts belong to the highest grade (Grade 5). These results show that the risk level of water supply and demand in cities is higher than that in towns. The government generally gives more attention to the adjustment strategy in the “cities." However, it should also provide proper adjustment strategies for the “towns" to be able to cope with the risks of water supply and demand.

Keywords: Climate change, risk, vulnerability, water supply and demand.

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Authors: Proud Arunrangsiwed

Abstract:

This study analyzes the crisis management and image repair strategies during the crisis of Mahidol Wittayanusorn School (MWIT) library burning. The library of this school was burned by a 16-year-old-male student on June 6th, 2010. This student blamed the school that the lesson was difficult, and other students were selfish. Although no one was in the building during the fire, it had caused damage to the building, books and electronic supplies around 130 million bahts (4.4 million USD). This event aroused many discourses arguing about the education system and morality. The strategies which were used during crisis were denial, shift the blame, bolstering, minimization, and uncertainty reduction. The results of using these strategies appeared after the crisis. That was the numbers of new students, who registered for the examination to get into this school in the later years, have remained the same.

Keywords: School, crisis management, violence, image repair strategies, uncertainty, burn.

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Authors: Jongmin Kim, Tae-Ho Song

Abstract:

A measurement apparatus is designed and fabricated to measure the effective thermal conductivity (keff) of a VIP (vacuum insulation panel) core specimen under various vacuum states and external loads. The apparatus consists of part for measuring keff, and parts for controlling external load and vacuum condition. Uncertainty of the apparatus is validated by measuring the standard reference material and comparing with commercial devices with VIP samples. Assessed uncertainty is maximum 2.5 % in case of the standard reference material, 10 % in case of VIP samples. Using the apparatus, keff of glass paper under various vacuum levels is examined.

Keywords: Effective thermal conductivity, guarded hot plate method, vacuum insulation panel

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Authors: P. K. Sarkar, Amit Kumar Jain

Abstract:

The demand for Urban transportation is characterised by a large scale temporal and spatial variations which causes heavy congestion inside metro trains in peak hours near Centre Business District (CBD) of the city. The conventional approach to address peak hour congestion, metro trains has been to increase the supply by way of introduction of more trains, increasing the length of the trains, optimising the time table to increase the capacity of the system. However, there is a limitation of supply side measures determined by the design capacity of the systems beyond which any addition in the capacity requires huge capital investments. The demand side interventions are essentially required to actually spread the demand across the time and space. In this study, an attempt has been made to identify the potential Transport Demand Management tools applicable to Urban Rail Transportation systems with a special focus on differential pricing. A conceptual price elasticity model has been developed to analyse the effect of various combinations of peak and nonpeak hoursfares on demands. The elasticity values for peak hour, nonpeak hour and cross elasticity have been assumed from the relevant literature available in the field. The conceptual price elasticity model so developed is based on assumptions which need to be validated with actual values of elasticities for different segments of passengers. Once validated, the model can be used to determine the peak and nonpeak hour fares with an objective to increase overall ridership, revenue, demand levelling and optimal utilisation of assets.

Keywords: Congestion, differential pricing, elasticity, transport demand management, urban transportation.

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Authors: Yasuhito Tanaka

Abstract:

In this paper we will constructively prove the existence of an equilibrium in a competitive economy with sequentially locally non-constant excess demand functions. And we will show that the existence of such an equilibrium in a competitive economy implies Sperner-s lemma. We follow the Bishop style constructive mathematics.

Keywords: Sequentially locally non-constant excess demand functions, Equilibrium in a competitive economy, Constructive mathematics

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Authors: Salinee Thumronglaohapun

Abstract:

The proper number and appropriate locations of service centers can save cost, raise revenue and gain more satisfaction from customers. Establishing service centers is high-cost and difficult to relocate. In long-term planning periods, several factors may affect the service. One of the most critical factors is uncertain demand of customers. The opened service centers need to be capable of serving customers and making a profit although the demand in each period is changed. In this work, the capacitated location-allocation problem with stochastic demand is considered. A mathematical model is formulated to determine suitable locations of service centers and their allocation to maximize total profit for multiple planning periods. Two heuristic methods, a local search and genetic algorithm, are used to solve this problem. For the local search, five different chances to choose each type of moves are applied. For the genetic algorithm, three different replacement strategies are considered. The results of applying each method to solve numerical examples are compared. Both methods reach to the same best found solution in most examples but the genetic algorithm provides better solutions in some cases.

Keywords: Location-allocation problem, stochastic demand, local search, genetic algorithm.

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