A simulation based research on chance constrained programming in robust facility location problem

Since facility location decisions problem include long-term character and potential parameter variations, it is important to consider uncertainty in its modeling. This paper examines robust facility location problem considering supply uncertainty, in which we assume the supply of the facility in the...

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Vydané v:Open Physics Ročník 15; číslo 1; s. 87 - 96
Hlavní autori: Kaijun, Leng, Wen, Shi, Guanghua, Song, Lin, Pan
Médium: Journal Article
Jazyk:English
Vydavateľské údaje: De Gruyter Open 01.01.2017
De Gruyter
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05.45.-a
Chance constrained programming
Facility Location
Supply fluctuation
ISSN:2391-5471, 2391-5471
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Abstract Since facility location decisions problem include long-term character and potential parameter variations, it is important to consider uncertainty in its modeling. This paper examines robust facility location problem considering supply uncertainty, in which we assume the supply of the facility in the actual operation is not equal to the supply initially established, the supply is subject to random fluctuation. The chance constraints are introduced when formulating the robust facility location model to make sure the system operate properly with a certain probability while the supply fluctuates. The chance constraints are approximated safely by using Hoeffding’s inequality and the problem is transformed to a general deterministic linear programming. Furthermore, how the facility location cost change with confidence level is investigated through a numerical example. The sensitivity analysis is conducted for important parameters of the model and we get the main factors that affect the facility location cost.
AbstractList Since facility location decisions problem include long-term character and potential parameter variations, it is important to consider uncertainty in its modeling. This paper examines robust facility location problem considering supply uncertainty, in which we assume the supply of the facility in the actual operation is not equal to the supply initially established, the supply is subject to random fluctuation. The chance constraints are introduced when formulating the robust facility location model to make sure the system operate properly with a certain probability while the supply fluctuates. The chance constraints are approximated safely by using Hoeffding’s inequality and the problem is transformed to a general deterministic linear programming. Furthermore, how the facility location cost change with confidence level is investigated through a numerical example. The sensitivity analysis is conducted for important parameters of the model and we get the main factors that affect the facility location cost.
Author Lin, Pan
Guanghua, Song
Wen, Shi
Kaijun, Leng
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SubjectTerms 05.45.-a
Chance constrained programming
Facility Location
Supply fluctuation
Title A simulation based research on chance constrained programming in robust facility location problem
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