Abstract | ||
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In this article, we analyze a location model where facilities may be subject to disruptions. Customers do not have advance information about whether a given facility is operational or not, and thus may have to visit several facilities before finding an operational one. The objective is to locate a set of facilities to minimize the total expected cost of customer travel. We decompose the total cost into travel, reliability, and information components. This decomposition allows us to put a value on the advance information about the states of facilities and compare it to the reliability and travel cost components, which allows a decision maker to evaluate which part of the system would benefit the most from improvements. The structure of optimal solutions is analyzed, with two interesting effects identified: facility centralization and co-location; both effects appear to be stronger than in the complete information case, where the status of each facility is known in advance. |
Year | DOI | Venue |
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2009 | 10.1111/j.1540-5915.2009.00253.x | DECISION SCIENCES |
Keywords | DocType | Volume |
Discrete, Discrete Location, Facilities, Equipment Planning, and Reliability and p-Median | Journal | 40 |
Issue | ISSN | Citations |
4 | 0011-7315 | 16 |
PageRank | References | Authors |
0.81 | 4 | 3 |
Name | Order | Citations | PageRank |
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O. Berman | 1 | 1604 | 231.36 |
Dmitry Krass | 2 | 483 | 82.08 |
Mozart B. C. Menezes | 3 | 128 | 9.17 |