Algorithmic Approaches for Identifying the Trade-Off Between Pessimism and Optimism in a Stochastic Fixed Charge Facility Location Problem

Published Online:https://doi.org/10.1287/ijoo.2025.0093

References

  • Ağralı S, Geunes J, Taşkın ZC (2012) A facility location model with safety stock costs: Analysis of the cost of single-sourcing requirements. J. Global Optim. 54(3):551–581.Google Scholar
  • Albareda-Sambola M, Fernández E, Saldanha-da-Gama F (2017) Heuristic solutions to the facility location problem with general Bernoulli demands. INFORMS J. Comput. 29(4):737–753.LinkGoogle Scholar
  • Alizadeh M, Ma J, Mahdavi-Amiri N, Marufuzzaman M, Jaradat R (2019) A stochastic programming model for a capacitated location-allocation problem with heterogeneous demands. Comput. Indust. Engrg. 137:106055.Google Scholar
  • Baron O, Milner J, Naseraldin H (2011) Facility location: A robust optimization approach. Production Oper. Management 20(5):772–785.Google Scholar
  • Basciftci B, Ahmed S, Shen S (2021) Distributionally robust facility location problem under decision-dependent stochastic demand. Eur. J. Oper. Res. 292(2):548–561.Google Scholar
  • Bieniek M (2015) A note on the facility location problem with stochastic demands. Omega 55:53–60.Google Scholar
  • Blankenship JW, Falk JE (1976) Infinitely constrained optimization problems. J. Optim. Theory Appl. 19(2):261–281.Google Scholar
  • Cheng C, Adulyasak Y, Rousseau LM (2021) Robust facility location under demand uncertainty and facility disruptions. Omega 103:102429.Google Scholar
  • Cheng C, Qi M, Zhang Y, Rousseau LM (2018) A two-stage robust approach for the reliable logistics network design problem. Transportation Res. Part B: Methodological 111:185–202.Google Scholar
  • Cheng C, Yu Q, Adulyasak Y, Rousseau LM (2024) Distributionally robust facility location with uncertain facility capacity and customer demand. Omega 122:102959.Google Scholar
  • Daskin MS, Coullard CR, Shen ZJM (2002) An inventory-location model: Formulation, solution algorithm and computational results. Ann. Oper. Res. 110(1):83–106.Google Scholar
  • Delage E, Ye Y (2010) Distributionally robust optimization under moment uncertainty with application to data-driven problems. Oper. Res. 58(3):595–612.LinkGoogle Scholar
  • Gourtani A, Nguyen TD, Xu H (2020) A distributionally robust optimization approach for two-stage facility location problems. EURO J. Comput. Optim. 8(2):141–172.Google Scholar
  • Jarvis RA (1973) On the identification of the convex hull of a finite set of points in the plane. Inform. Processing Lett. 2(1):18–21.Google Scholar
  • Jiang R, Zhang M, Li G, Guan Y (2012) Benders’ decomposition for the two-stage security constrained robust unit commitment problem. Lim G, Herrmann JW, eds. Proc. 2012 Indust. Systems Engrg. Res. Conf. (Institute of Industrial Engineers, Norcross, GA), 3332–3341.Google Scholar
  • Kuhn D, Mohajerin Esfahani P, Nguyen VA, Shafieezadeh-Abadeh S (2019) Wasserstein distributionally robust optimization: Theory and applications in machine learning. INFORMS TutORials in Operations Research (INFORMS, Catonsville, MD), 130–166.LinkGoogle Scholar
  • Laporte G, Louveaux FV, van Hamme L (1994) Exact solution to a location problem with stochastic demands. Transportation Sci. 28(2):95–103.LinkGoogle Scholar
  • Lei C, Lin WH, Miao L (2014) A multicut L-shaped based algorithm to solve a stochastic programming model for the mobile facility routing and scheduling problem. Eur. J. Oper. Res. 238(3):699–710.Google Scholar
  • Lin C (2009) Stochastic single-source capacitated facility location model with service level requirements. Internat. J. Production Econom. 117(2):439–451.Google Scholar
  • Lin F, Fang X, Gao Z (2022) Distributionally robust optimization: A review on theory and applications. Numer. Algebra Control Optim. 12(1):159–212.Google Scholar
  • Liu K, Li Q, Zhang ZH (2019) Distributionally robust optimization of an emergency medical service station location and sizing problem with joint chance constraints. Transportation Res. Part B: Methodological 119:79–101.Google Scholar
  • Liu T, Saldanha-da Gama F, Wang S, Mao Y (2022) Robust stochastic facility location: Sensitivity analysis and exact solution. INFORMS J. Comput. 34(5):2776–2803.LinkGoogle Scholar
  • Louveaux FV (1986) Discrete stochastic location models. Ann. Oper. Res. 6:21–34.Google Scholar
  • Murali P, Ordóñez F, Dessouky MM (2012) Facility location under demand uncertainty: Response to a large-scale bio-terror attack. Socioeconom. Planning Sci. 46(1):78–87.Google Scholar
  • Mutapcic A, Boyd S (2009) Cutting-set methods for robust convex optimization with pessimizing oracles. Optim. Methods Software 24(3):381–406.Google Scholar
  • Rahimian H, Mehrotra S (2022) Frameworks and results in distributionally robust optimization. Open J. Math. Optim. 3:1–85.Google Scholar
  • Saif A, Delage E (2021) Data-driven distributionally robust capacitated facility location problem. Eur. J. Oper. Res. 291(3):995–1007.Google Scholar
  • Santoso T, Ahmed S, Goetschalckx M, Shapiro A (2005) A stochastic programming approach for supply chain network design under uncertainty. Eur. J. Oper. Res. 167(1):96–115.Google Scholar
  • Shehadeh KS, Sanci E (2021) Distributionally robust facility location with bimodal random demand. Comput. Oper. Res. 134:105257.Google Scholar
  • Shehadeh KS, Tucker EL (2022) Stochastic optimization models for location and inventory prepositioning of disaster relief supplies. Transportation Res. Part C: Emerging Tech. 144:103871.Google Scholar
  • Shen ZJM, Coullard C, Daskin MS (2003) A joint location-inventory model. Transportation Sci. 37(1):40–55.LinkGoogle Scholar
  • Shen ZJM, Zhan RL, Zhang J (2011) The reliable facility location problem: Formulations, heuristics, and approximation algorithms. INFORMS J. Comput. 23(3):470–482.LinkGoogle Scholar
  • Sheppard ES (1974) A conceptual framework for dynamic location—Allocation analysis. Environment Planning A: Econom. Space 6(5):547–564.Google Scholar
  • Tan T, Xie R, Xu X, Chen Y (2024) A robust optimization method for power systems with decision-dependent uncertainty. Energy Conversion Econom. 5(3):133–145.Google Scholar
  • Tsang MY, Shehadeh KS (2023) Stochastic optimization models for a home service routing and appointment scheduling problem with random travel and service times. Eur. J. Oper. Res. 307(1):48–63.Google Scholar
  • Tsang MY, Shehadeh KS (2025) On the tradeoff between distributional belief and ambiguity: Conservatism, finite-sample guarantees, and asymptotic properties. INFORMS J. Optim. 7(3):240–263.LinkGoogle Scholar
  • Tsang MY, Shehadeh KS, Curtis FE (2023) An inexact column-and-constraint generation method to solve two-stage robust optimization problems. Oper. Res. Lett. 51(1):92–98.Google Scholar
  • Wagner MR, Bhadury J, Peng S (2009) Risk management in uncapacitated facility location models with random demands. Comput. Oper. Res. 36(4):1002–1011.Google Scholar
  • Wang KJ, Lee CH (2015) A revised ant algorithm for solving location–allocation problem with risky demand in a multi-echelon supply chain network. Appl. Soft Comput. 32:311–321.Google Scholar
  • Wang S, Chen Z, Liu T (2020) Distributionally robust hub location. Transportation Sci. 54(5):1189–1210.LinkGoogle Scholar
  • Wang S, Wang H, Li X, Honorio J (2025) Learning against distributional uncertainty: On the trade-off between robustness and specificity. IEEE J. Selected Topics Signal Processing 19(7):1420–1435.Google Scholar
  • Xu H, Liu Y, Sun H (2018) Distributionally robust optimization with matrix moment constraints: Lagrange duality and cutting plane methods. Math. Programming 169(2):489–529.Google Scholar
  • Zeng B, Zhao L (2013) Solving two-stage robust optimization problems using a column-and-constraint generation method. Oper. Res. Lett. 41(5):457–461.Google Scholar
  • Zetina CA, Contreras I, Cordeau JF, Nikbakhsh E (2017) Robust uncapacitated hub location. Transportation Res. Part B: Methodological 106:393–410.Google Scholar
  • Zhang ZH, Berenguer G, Shen ZJ (2015) A capacitated facility location model with bidirectional flows. Transportation Sci. 49(1):114–129.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.