Article | Nordic MPS 2004. The Ninth Meeting of the Nordic Section of the Mathematical Programming Society | Facility Location under Economics of Scale in the Case of Uncertain Demand

Title:
Facility Location under Economics of Scale in the Case of Uncertain Demand
Author:
Peter Schütz: University of Science and Technology, Norway Leen Stougie: University of Science and Technology, Norway Asgeir Tomasgard: University of Science and Technology, Norway
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Full text (pdf)
Year:
2004
Conference:
Nordic MPS 2004. The Ninth Meeting of the Nordic Section of the Mathematical Programming Society
Issue:
014
Article no.:
024
No. of pages:
1
Publication type:
Abstract
Published:
2004-12-28
Series:
Linköping Electronic Conference Proceedings
ISSN (print):
1650-3686
ISSN (online):
1650-3740
Publisher:
Linköping University Electronic Press; Linköpings universitet


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The presentation adresses facility location under uncertain demand. The problem is to determine the optimal location of facilities and allocation of customer demand to these facilities. The costs of operating the facilities are subject to economics of scale and customer demand is uncertain. The objective is then to minimize the total expected cost. These costs can be split into three parts: firstly the costs of investing in a facility and maintaining it; secondly the costs of operating a facility with strictly diminishing average costs; and thirdly linear transportation costs. We show a solution method for this problem based on Lagrangean Relaxation. We present computational results from the Norwegian meat industry and the location of slaughterhouses.

Nordic MPS 2004. The Ninth Meeting of the Nordic Section of the Mathematical Programming Society

Author:
Peter Schütz, Leen Stougie, Asgeir Tomasgard
Title:
Facility Location under Economics of Scale in the Case of Uncertain Demand
References:
No references available

Nordic MPS 2004. The Ninth Meeting of the Nordic Section of the Mathematical Programming Society

Author:
Peter Schütz, Leen Stougie, Asgeir Tomasgard
Title:
Facility Location under Economics of Scale in the Case of Uncertain Demand
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