Sciweavers

COR
2008

Stochastic facility location with general long-run costs and convex short-run costs

13 years 3 months ago
Stochastic facility location with general long-run costs and convex short-run costs
This paper addresses the problem of minimizing the expected cost of locating a number of single product facilities and allocating uncertain customer demand to these facilities. The total costs consist of two components: firstly linear transportation cost of satisfying customer demand and secondly the costs of investing in a facility as well as maintaining and operating it. These facility costs are general and non-linear in shape and could express both changing economies of scale and diseconomies of scale. We formulate the problem as a two-stage stochastic programming model where both demand and short-run costs may be uncertain at the investment time. We use a solution method based on Lagrangean relaxation, and show computational results for a slaughterhouse location case from the Norwegian meat industry. Preprint submitted to Elsevier Science 1 February 2006
Peter Schütz, Leen Stougie, Asgeir Tomasgard
Added 09 Dec 2010
Updated 09 Dec 2010
Type Journal
Year 2008
Where COR
Authors Peter Schütz, Leen Stougie, Asgeir Tomasgard
Comments (0)