Title
Locating Facilities In The Presence Of Disruptions And Incomplete Information
Abstract
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
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
O. Berman11604231.36
Dmitry Krass248382.08
Mozart B. C. Menezes31289.17