Reliable Facility Location Problem with Facility Protection

<div><p>This paper studies a reliable facility location problem with facility protection that aims to hedge against random facility disruptions by both strategically protecting some facilities and using backup facilities for the demands. An Integer Programming model is proposed for this problem, in which the failure probabilities of facilities are site-specific. A solution approach combining Lagrangian Relaxation and local search is proposed and is demonstrated to be both effective and efficient based on computational experiments on random numerical examples with 49, 88, 150 and 263 nodes in the network. A real case study for a 100-city network in Hunan province, China, is presented, based on which the properties of the model are discussed and some managerial insights are analyzed.</p></div

Cost corresponding to different facility failure probabilities q.

<p>Cost corresponding to different facility failure probabilities q.</p

The sites with facilities opened corresponding to different q.

<p>The sites with facilities opened corresponding to different q.</p

Number of sites with facilities opened corresponding to different W.

<p>Number of sites with facilities opened corresponding to different W.</p

Number of opened unreliable and reliable facilities corresponding to different q.

<p>Number of opened unreliable and reliable facilities corresponding to different q.</p

Demand points of the case example.

<p>Demand points of the case example.</p

Illustrative example for the local moves.

<p>Illustrative example for the local moves.</p

Frequency of opening a reliable facility for different sites.

<p>Frequency of opening a reliable facility for different sites.</p

Costs corresponding to different W and two failure probabilities.

<p>Costs corresponding to different W and two failure probabilities.</p

Costs of different terms corresponding to different .

<p>Costs of different terms corresponding to different .</p