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Reliable Location-Routing Design Under Probabilistic Facility Disruptions

Author

Listed:
  • Weijun Xie

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Yanfeng Ouyang

    (Department of Civil and Environmental Engineering, University of Illinois at Urbana–Champaign, Urbana, Illinois 61801)

  • Sze Chun Wong

    (Department of Civil Engineering, University of Hong Kong, Hong Kong)

Abstract
This study considers an integer programming formulation of a reliable location routing problem in which built facilities are subject to the risk of probabilistic disruptions. In this study we identify facility locations, and outbound delivery routing and backup plans during disruptions to minimize facility setup, routing, and customer penalty costs (if no delivery is possible). A variety of approaches (e.g., Lagrangian relaxation with embedded column generation and local search) to solving the problem are assessed. We conduct numerical case studies to test the performance of the proposed model and solution algorithms. The findings offer managerial insights into how various system parameters affect the optimal solution.

Suggested Citation

  • Weijun Xie & Yanfeng Ouyang & Sze Chun Wong, 2016. "Reliable Location-Routing Design Under Probabilistic Facility Disruptions," Transportation Science, INFORMS, vol. 50(3), pages 1128-1138, August.
    • Handle: RePEc:inm:ortrsc:v:50:y:2016:i:3:p:1128-1138
    DOI: 10.1287/trsc.2015.0630
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    References listed on IDEAS

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