Siting and Sizing of Facilities under Probabilistic Demands

In this paper a discrete location model for non-essential service facilities planning is described, which seeks the number, location, and size of facilities, that maximizes the total expected demand attracted by the facilities. It is assumed that the demand for service is sensitive to the distance f...

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Veröffentlicht in:Journal of optimization theory and applications 2011-05, Vol.149 (2), p.420-440
Hauptverfasser: Fernandes, Luís M., Júdice, Joaquim J., Sherali, Hanif D., Antunes, António P.
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container_title Journal of optimization theory and applications
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creator Fernandes, Luís M.
Júdice, Joaquim J.
Sherali, Hanif D.
Antunes, António P.
description In this paper a discrete location model for non-essential service facilities planning is described, which seeks the number, location, and size of facilities, that maximizes the total expected demand attracted by the facilities. It is assumed that the demand for service is sensitive to the distance from facilities and to their size. It is also assumed that facilities must satisfy a threshold level of demand (facilities are not economically viable below that level). A Mixed-Integer Nonlinear Programming (MINLP) model is proposed for this problem. A branch-and-bound algorithm is designed for solving this MINLP and its convergence to a global minimum is established. A finite procedure is also introduced to find a feasible solution for the MINLP that reduces the overall search in the binary tree generated by the branch-and-bound algorithm. Some numerical results using a GAMS/MINOS implementation of the algorithm are reported to illustrate its efficacy and efficiency in practice.
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subjects Algorithms
Applications of Mathematics
Branch & bound algorithms
Calculus of Variations and Optimal Control
Optimization
Demand
Economics
Engineering
Facilities planning
Marketing
Mathematical models
Mathematics
Mathematics and Statistics
Nonlinear programming
Operations Research/Decision Theory
Optimization
Position (location)
Searching
Service facilities
Studies
Theory of Computation
Travel
title Siting and Sizing of Facilities under Probabilistic Demands
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