A Capacitated Facility Location Problem With Constrained Backlogging Probabilities

International Journal of Production Research, Forthcoming

Posted: 13 Mar 2007

See all articles by Francisco J. F. Silva

Francisco J. F. Silva

University of the Azores - Department of Economics and Business

Daniel Serra

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Abstract

One of the assumptions of the capacitated facility location problem (CFLP) is that demand is known and fixed. Most often, this is not the case when managers take some strategic decisions such as locating facilities and assigning demand points to those facilities. In this paper we consider demand as stochastic and we model each of the facilities as an independent queue. Stochastic models of manufacturing systems and deterministic location models are put together in order to obtain a formula for the backlogging probability at a potential facility location.

Several solution techniques have been proposed to solve the CFLP. One of the most recently proposed heuristics, a reactive greedy adaptive search procedure, is implemented in order to solve the model formulated. We present some computational experiments in order to evaluate the heuristics' performance and to illustrate the use of this new formulation for the CFLP. The paper finishes with a simple simulation exercise.

Keywords: Location, queuing, greedy heuristics, simulation

Suggested Citation

Silva, Francisco J. F. and Serra, Daniel, A Capacitated Facility Location Problem With Constrained Backlogging Probabilities. International Journal of Production Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=969401

Francisco J. F. Silva (Contact Author)

University of the Azores - Department of Economics and Business ( email )

9501-801 Ponta Delgada Azores
Portugal

Daniel Serra

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 16 66 (Phone)
(34) 93 542 17 46 (Fax)

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