1223. The Reliable Capacitated Modular Facility Location Problem
Invited abstract in session MD-48: Applications of Location Methods, stream Locational Analysis.
Monday, 14:30-16:00Room: Parkinson B09
Authors (first author is the speaker)
| 1. | Lea Raubuch
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| Junior Professorship of Management Science, TU Dresden | |
| 2. | Stefan Lier
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| FH Südwestfalen | |
| 3. | Tristan Becker
|
| TU Dresden |
Abstract
Modular production concepts provide an increased flexibility in production systems, enabling better adaptation to demand fluctuations and supply chain disruptions. Unlike immobile plant systems that rely on reallocating demand in the event of disruptions, modular systems can flexibly relocate production units between sites. This study investigates the potential of location flexibility in modular production systems for reliable network design in a two-stage stochastic setting. The objective is to minimize the total cost of the production network while meeting customer demand. At the first stage, modules of independent failure probabilities are located at production facilities. At the second stage, the modules can be relocated and demand reassigned to deal with disruptions. This problem generalizes the capacitated reliable facility location problem (CRFLP). We propose two mathematical formulations: a facility-indexed and module-indexed formulation. We apply scenario reduction techniques to solve these models with data from the chemical industry. Our experiments illustrate the benefits of including relocations and reliability in location decisions of modular production units. Due to the efficient scenario structure, we also apply our module-indexed formulation to CRFLP problem instances. Our formulation significantly reduces the scenario space compared to existing formulations for the CRFLP when an upper bound on facilities is known.
Keywords
- Location
- Stochastic Optimization
- Network Design
Status: accepted
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