Title
Pricing unsatisfied demand in the reliable uncapacitated facility location problem
Date Issued
01 January 2018
Access level
metadata only access
Resource Type
conference paper
Author(s)
Universidad del Turabo
Publisher(s)
Institute of Industrial and Systems Engineers, IISE
Abstract
Logistics costs after natural disasters may be reduced through the implementation of reliability models in the design stage of distribution networks. This research compares two mathematical formulations for the reliable uncapacitated facility location problem (RUFL) which model correlated disruptions in order to minimize the sum of fixed and transportation costs. The study compares a RUFL model which reduces unsatisfied service by allowing the decision maker to price unsatisfied demand using a penalty cost and a RUFL model with service levels (RUFL-SL) that ensures a minimum level of satisfied demand for each scenario. Experimental results with correlated random disruptions suggest that the RUFL-SL dominates relevant solutions of the RUFL under some experimental conditions, but is dominated by the RUFL under other experimental conditions. It is concluded that the RUFL-SL model is preferable to the RUFL when service interruptions may not be easily translated into penalty costs or when service is critical.
Start page
1943
End page
1948
Language
English
OCDE Knowledge area
Ingeniería de producción
Subjects
Scopus EID
2-s2.0-85054018793
Source
IISE Annual Conference and Expo 2018
Conference
2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018 Orlando 19 May 2018 through 22 May 2018
Sponsor(s)
This material is based upon work partially supported by the Department of Energy/National Nuclear Security Administration under Award number DE-NA0003330 and by the Dwight David Eisenhower Transportation Fellowship Program (DDETFP) of the Federal Highway Administration.
Sources of information:
Directorio de Producción Científica
Scopus