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3483. The Stochastic Capacitated Facility Location Problem with Backlogs: Exact and Heuristic Algorithms

Invited abstract in session MD-61: Location under uncertainty, stream Locational Analysis.

Monday, 14:30-16:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. José Emmanuel Gómez-Rocha
Tecnológico de Monterrey
2. José-Fernando Camacho-Vallejo
Escuela de Ingeniería y Ciencias, Tecnologico de Monterrey
3. Eva Selene Hernández Gress
Industrial Engineering, Tec de Monterrey
4. Cipriano Santos
Tecnologico de Monterrey

Abstract

The Capacitated Facility Location Problem (CFLP) is a well-known combinatorial optimization problem extensively studied in the field of location sciences. It has numerous applications in industrial engineering, humanitarian logistics, telecommunication networks, and other domains. Incorporating uncertainties in demands, stochastic programming emerges as a suitable approach to address this problem. However, the main drawback is that due to stochasticity, not all customer demand may be satisfied. To address this issue, we introduce the concept of backlogs into the CFLP. As a result, the CFLP with backlogs and normally distributed demands is proposed, where the cost of losing a customer is considered as a penalty cost in the objective function. To solve the problem we propose an exact and a heuristic method. The exact method is a Benders decomposition based on Branch-and-Cut. The heuristic method follows a Fixing-First scheme based on pricing strategies that efficiently solves the problem within a reasonable computational time. The effectiveness of the proposed algorithms is evaluated by comparing it against a deterministic equivalent solution given by the general-purpose solver Gurobi. Computational experiments are conducted on a set of challenging instances using a sample average approximation scheme. To validate the applicability of the problem under study, a real case study involving Mobile Health Clinics (MHCs) located in Mexico was analyzed.

Keywords

Status: accepted

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