Title
Facility Location with Stochastic Demand and Constraints on Waiting Time
Abstract
We analyze the problem of optimal location of a set of facilities in the presence of stochastic demand and congestion. Customers travel to the closest facility to obtain service; the problem is to determine the number, locations, and capacity of the facilities. Under rather general assumptions (spatially distributed continuous demand, general arrival and service processes, and nonlinear location and capacity costs) we show that the problem can be decomposed, and construct an efficient optimization algorithm. The analysis yields several insights, including the importance of equitable facility configurations (EFCs), the behavior of optimal and near-optimal capacities, and robust class of solutions that can be constructed for this problem.
Year
DOI
Venue
2008
10.1287/msom.1070.0182
Manufacturing & Service Operations Management
Keywords
Field
DocType
general arrival,continuous demand,closest facility,optimal location,nonlinear location,near-optimal capacity,general assumption,stochastic demand,facility location,waiting time,service process,equitable facility configuration,capacity cost,service level,queueing
Economics,Mathematical optimization,Nonlinear system,Service level,Closest facility,Facility location problem,Queueing theory,Optimization algorithm,1-center problem,Operations management
Journal
Volume
Issue
ISSN
10
3
1523-4614
Citations 
PageRank 
References 
18
1.34
7
Authors
3
Name
Order
Citations
PageRank
Opher Baron114514.64
O. Berman21604231.36
Dmitry Krass348382.08