A novel robust optimization to facility location problem

Authors: Zhizhu Lai*,
Topics: Location Theory, Spatial Analysis & Modeling, China
Keywords: Robust optimization, Facility location problem, p-robustness,Teitz-Bart heuristic
Session Type: Paper
Day: 4/4/2019
Start / End Time: 8:00 AM / 9:40 AM
Room: Truman, Marriott, Mezzanine Level
Presentation File: No File Uploaded

This work presents a novel methodology for facility location problem with uncertainty. Our study deal with selecting the robust optimal placements of facilities by using p-robustness concept. Aiming to find the minimal threshold of parameters in p-robustness constraints, we have developed a novel robust optimization referred to as min-p-robust optimization model (min-pRO) for p-median problem (PMP) and PMP with fix cost of potential facility sites (FPMP). The goal of the proposed model is to minimize the maximum relative regret across all scenarios. In response, we develop a Teitz-Bart heuristic combined with nearest allocation strategy for globally optimizing the problem. The performance of the model and the heuristic is demonstrated with numerical examples. The results indicate that the minimal p threshold increase with the increase of fluctuation range of data in the case of given facility number. However, the number of facilities have different effects on the minimal p threshold in the case of given fluctuation range of data. As the number of facilities increase, the minimal p threshold increases and decreases for PMP and FPMP, respectively.

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