Abstract | ||
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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 |
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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 Baron | 1 | 145 | 14.64 |
O. Berman | 2 | 1604 | 231.36 |
Dmitry Krass | 3 | 483 | 82.08 |