arXiv · 2310.18981
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.
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Maria Albareda-Sambola, Elena Fernández, Francisco Saldanha-da-Gama. 2023-10-29. Outsourcing policies for the Facility Location Problem with Bernoulli Demand. https://arxiv.org/abs/2310.18981
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