Outsourcing policies for the Facility Location Problem with Bernoulli Demand
Abstract
This paper focuses on the Facility Location Problem with Bernoulli Demand, a discrete facility location problem with uncertainty where the joint distribution of the customers' demands is expressed by means of a set of possible scenarios. A two-stage stochastic program with recourse is used to select the facility locations and the a priori assignments of customers to open plants, together with the a posteriori strategy to apply in those realizations where the a priori solution is not feasible. Four alternative outsourcing policies are studied for the recourse action, and a mathematical programming formulation is presented for each of them. Extensive computational experiments have been carried-out to analyze the performance of each of the formulations and to compare the quality of the solutions produced by each of them relative to the other outsourcing policies.
Cite
@article{arxiv.2310.18981,
title = {Outsourcing policies for the Facility Location Problem with Bernoulli Demand},
author = {Maria Albareda-Sambola and Elena Fernández and Francisco Saldanha-da-Gama},
journal= {arXiv preprint arXiv:2310.18981},
year = {2023}
}