Facility Location Decisions with Random Disruptions and Imperfect Estimation

Michael K. Lim
Michael K. Lim
[email protected]
Department of Business Administration, University of Illinois at Urbana–Champaign, Champaign, Illinois 61820
Search for more papers by this author
,
Achal Bassamboo
Achal Bassamboo
[email protected]
Department of Managerial Economics and Decision Sciences, Northwestern University, Evanston, Illinois 60208
Search for more papers by this author
,
Sunil Chopra
Sunil Chopra
[email protected]
Department of Managerial Economics and Decision Sciences, Northwestern University, Evanston, Illinois 60208
Search for more papers by this author
,
Mark S. Daskin
Mark S. Daskin
[email protected]
Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109
Search for more papers by this author

Michael K. Lim

[email protected]

Department of Business Administration, University of Illinois at Urbana–Champaign, Champaign, Illinois 61820

Search for more papers by this author

Achal Bassamboo

[email protected]

Department of Managerial Economics and Decision Sciences, Northwestern University, Evanston, Illinois 60208

Search for more papers by this author

Sunil Chopra

[email protected]

Department of Managerial Economics and Decision Sciences, Northwestern University, Evanston, Illinois 60208

Search for more papers by this author

Mark S. Daskin

[email protected]

Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109

Search for more papers by this author

Published Online:14 Dec 2012https://doi.org/10.1287/msom.1120.0413

Supplemental Material

msom.1120.0413-sm-ec.pdf (800 KB)

msom.1120.0413-sm-onlineappendix.pdf (800 KB)

Cited by
- Where to Invest in Resilience in a Facility Network?
  6 August 2025 | Production and Operations Management, Vol. 35, No. 1
- Relational Infrastructures for Planetary Health: Network Governance and Inner Development in Brazil’s Traceable Beef Export System
  16 October 2025 | Challenges, Vol. 16, No. 4
- A bi-objective Markov decision process design approach to redundancy allocation with dynamic maintenance for a parallel system
  European Journal of Operational Research, Vol. 66
- Reliable logistics network design joint optimization problem applying demand sensitivity to correlated disruptions
  Computers & Industrial Engineering, Vol. 209
- Data-Driven Reliable Facility Location Design
  Hao Shen,
  Mengying Xue,
  Zuo-Jun Max Shen
  4 December 2024 | Management Science, Vol. 71, No. 8
- A bi-objective robust optimization model to bolster a resilient medical supply chain in case of the ripple effect
  13 May 2025 | Operational Research, Vol. 25, No. 2
- Balancing Resilience and Efficiency: A Literature Review on Overcoming Supply Chain Disruptions
  18 December 2024 | Production and Operations Management, Vol. 34, No. 6
- A multi-objective optimization model for a multi-period mobile facility location problem with environmental and disruption considerations
  8 September 2022 | Annals of Operations Research, Vol. 346, No. 2
- Advanced Optimization in E-Commerce Logistics: Combining Matheuristics With Random Forests for Hub Location Efficiency
  IEEE Access, Vol. 13
- Disruption Tails and Revival Policies in the Supply Chain
  10 May 2025
- Performance Impact Analysis of Disruption Propagations in the Supply Chain
  10 May 2025
- Facility Location Planning and Network Design
  25 October 2025
- Operations and Supply Chain Strategy
  25 October 2025
- From operational to strategic modelling: A continuous multi-scale approach for last-mile analysis
  Transportation Research Part E: Logistics and Transportation Review, Vol. 191
- Facility Location Problem: Modeling Joint Disruptions Using Subordination
  Vishwakant Malladi,
  Kumar Muthuraman
  22 July 2024 | Transportation Science, Vol. 58, No. 5
- Evaluating proactive and reactive strategies in supply chain network design with coordinated inventory control in the presence of disruptions
  11 January 2024 | Journal of Industrial and Production Engineering, Vol. 41, No. 4
- Quantifying supply chain disruption: a recovery time equivalent value at risk approach
  25 October 2021 | International Journal of Logistics Research and Applications, Vol. 27, No. 5
- Optimizing vaccine distribution in developing countries under natural disaster risk
  17 August 2023 | Naval Research Logistics (NRL), Vol. 71, No. 1
- Robust actions for improving supply chain resilience and viability
  Omega, Vol. 123
- Optimization model for low-carbon supply chain considering multi-level backup strategy under hybrid uncertainty
  Applied Mathematical Modelling, Vol. 126
- Popularity prediction and optimal location: Application to restaurants
  1 January 2024 | SSRN Electronic Journal, Vol. 78
- Sources of Uncertainty and Risk Quantification Methods in Supply Chain Management: A Literature Study
  21 November 2023 | Operations Research Forum, Vol. 4, No. 4
- Designing a resilient supply chain network under ambiguous information and disruption risk
  Computers & Chemical Engineering, Vol. 179
- Robust integrated planning for LEO satellite network design and service operations
  Operations Research Letters, Vol. 51, No. 6
- A two-stage chance constrained stochastic programming model for emergency supply distribution considering dynamic uncertainty
  Transportation Research Part E: Logistics and Transportation Review, Vol. 179
- A Bi-Objective Optimization Model for a Low-Carbon Supply Chain Network with Risk of Uncertain Disruptions
  6 September 2023 | Symmetry, Vol. 15, No. 9
- An optimization-based methodology equipped with lean tools to strengthen medical supply chain resilience during a pandemic: A case study from Turkey
  Transportation Research Part E: Logistics and Transportation Review, Vol. 173
- On the influence of infrastructure availability on companies decisions toward modal shift and relocation of falicities
  Transportation Research Interdisciplinary Perspectives, Vol. 19
- A mathematical modeling approach for supply chain management under disruption and operational uncertainty
  26 January 2023 | AIChE Journal, Vol. 69, No. 4
- Robust Sourcing Under Multilevel Supply Risks: Analysis of Random Yield and Capacity
  Ming Zhao,
  Nickolas Freeman,
  Kai Pan
  18 November 2022 | INFORMS Journal on Computing, Vol. 35, No. 1
- Data-Driven Reliable Facility Location Design
  1 January 2023 | SSRN Electronic Journal, Vol. 25
- Sustainable supply chain for disaster management: structural dynamics and disruptive risks
  9 July 2020 | Annals of Operations Research, Vol. 319, No. 1
- Mathematical Programming Approach to Optimize Tactical and Operational Supply Chain Decisions under Disruptions
  3 November 2022 | Industrial & Engineering Chemistry Research, Vol. 61, No. 45
- A meta heuristic approach for reliable capacitated facility joint inventory-location problem with round-trip transportation under imperfect information of disruption in a Fuzzy environment
  14 September 2022 | RAIRO - Operations Research, Vol. 56, No. 5
- Economic Risk Potential of Infrastructure Failure Considering In-Land Waterways
  15 September 2022 | Water, Vol. 14, No. 18
- Designing transit-oriented multi-modal transportation systems considering travelers’ choices
  Transportation Research Part B: Methodological, Vol. 162
- Modeling and mitigating supply chain disruptions as a bilevel network flow problem
  28 February 2022 | Computational Management Science, Vol. 19, No. 3
- A General Model and Efficient Algorithms for Reliable Facility Location Problem Under Uncertain Disruptions
  Yongzhen Li,
  Xueping Li,
  Jia Shu,
  Miao Song,
  Kaike Zhang
  26 August 2021 | INFORMS Journal on Computing, Vol. 34, No. 1
- A Heuristic Method for Oil Distribution Networks Applied to the Switching Behavior in the Oil Industry
  2 July 2021
- Where to Invest Resilience in Supply Chain Network under Stochastic Disruptions?
  SSRN Electronic Journal, Vol. 299
- Disorders, Vulnerabilities and Resilience in the Supply Chain in Pandemic Times
  5 July 2021 | Logistics, Vol. 5, No. 3
- Achieving supply chain efficiency and resilience by using multi‐level commons
  12 May 2021 | Decision Sciences, Vol. 52, No. 4
- Costs of resilience and disruptions in supply chain network design models: A review and future research directions
  International Journal of Production Economics, Vol. 235
- The Impact of GIS/GPS Network Information Systems on the Logistics Distribution Cost of Tobacco Enterprises
  Transportation Research Part E: Logistics and Transportation Review, Vol. 149
- Mitigating Product Shortage Due to Disruptions in Multi‐Stage Supply Chains
  1 April 2021 | Production and Operations Management, Vol. 30, No. 4
- Retail supply chain network design with concurrent resilience capabilities
  International Journal of Production Economics, Vol. 234
- Business continuity-inspired resilient supply chain network design
  23 November 2020 | International Journal of Production Research, Vol. 59, No. 5
- The capacitated modular single-allocation hub location problem with possibilities of hubs disruptions: modeling and a solution algorithm
  17 November 2018 | Operational Research, Vol. 21, No. 1
- Decision Assessment Algorithms for Location and Capacity Optimization under Resource Shortages
  1 December 2019 | Decision Sciences, Vol. 52, No. 1
- Ensuring sustainability in the reverse supply chain in case of the ripple effect: A two-stage stochastic optimization model
  Journal of Cleaner Production, Vol. 282
- Humanitarian relief supply network design: Expander graph based approach and a case study of 2013 Flood in Northeast China
  Transportation Research Part E: Logistics and Transportation Review, Vol. 146
- Evolution of supply chain ripple effect: a bibliometric and meta-analytic view of the constructs
  26 September 2019 | International Journal of Production Research, Vol. 59, No. 1
- Robust optimisation for ripple effect on reverse supply chain: an industrial case study
  17 March 2020 | International Journal of Production Research, Vol. 59, No. 1
- Operations and Supply Chain Strategy
  26 November 2021
- Facility Location Planning and Network Design
  26 November 2021
- Achieving Supply Chain Efficiency and Resilience by Using Multi-level Commons
  SSRN Electronic Journal, Vol. 56
- Inventory Management with Disruption Risk
- Ripple effect quantification by supplier risk exposure assessment
  11 October 2019 | International Journal of Production Research, Vol. 58, No. 18
- Robust approach for air cargo freight forwarder selection under disruption
  26 August 2019 | Annals of Operations Research, Vol. 291, No. 1-2
- Sustainable trade promotion decisions under demand disruption in manufacturer-retailer supply chains
  14 July 2018 | Annals of Operations Research, Vol. 290, No. 1-2
- Optimal Number of Hierarchical Facilities with Failures
  8 July 2019 | Geographical Analysis, Vol. 52, No. 3
- Robust global sourcing under compliance legislation
  European Journal of Operational Research, Vol. 284, No. 1
- Location‐Routing with Conflicting Objectives: Coordinating eBeam Phytosanitary Treatment and Distribution of Mexican Import Commodities
  1 June 2020 | Production and Operations Management, Vol. 29, No. 6
- Supply chain network design under the risk of uncertain disruptions
  5 December 2019 | International Journal of Production Research, Vol. 58, No. 6
- Facility Location with Joint Disruptions
  SSRN Electronic Journal, Vol. 79
- Inventory Management Under Disruption Risk
- Analysing the effect of government policy intervention on cross-border freight transportation flows: the Belt and Road perspective
  27 March 2019 | Transportmetrica A: Transport Science, Vol. 15, No. 2
- A Benders Decomposition Method for Designing Reliable Supply Chain Networks Accounting for Multimitigation Strategies and Demand Losses
  Nader Azad,
  Elkafi Hassini
  28 August 2019 | Transportation Science, Vol. 53, No. 5
- Low-Certainty-Need (LCN) supply chains: a new perspective in managing disruption risks and resilience
  14 September 2018 | International Journal of Production Research, Vol. 57, No. 15-16
- Alternative-fuel station network design under impact of station failures
  24 September 2018 | Annals of Operations Research, Vol. 279, No. 1-2
- A Responsive Pricing Grid Operator Sourcing from Competing Generators under Uncertain Supply and Demand
  27 July 2019 | Sustainability, Vol. 11, No. 15
- Enhancing supply chain resilience using ontology-based decision support system
  18 April 2019 | International Journal of Computer Integrated Manufacturing, Vol. 32, No. 7
- Disruption Tails and Revival Policies in the Supply Chain
  18 April 2019
- Performance Impact Analysis of Disruption Propagations in the Supply Chain
  18 April 2019
- Operations and Supply Chain Strategy
  27 September 2018
- Disruption tails and revival policies: A simulation analysis of supply chain design and production-ordering systems in the recovery and post-disruption periods
  Computers & Industrial Engineering, Vol. 127
- A Continuous Approximation Approach Based on Regular Hexagon Partition for the Facility Location Problem under Disruptions Risk
  12 February 2019 | Complexity, Vol. 2019, No. 1
- An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions
  31 August 2018 | Sustainability, Vol. 10, No. 9
- Forecasting time-varying logistics distribution flows in the One Belt-One Road strategic context
  Transportation Research Part E: Logistics and Transportation Review, Vol. 117
- Multi-dual decomposition solution for risk-averse facility location problem
  Transportation Research Part E: Logistics and Transportation Review, Vol. 116
- Wholesale Price Contracts for Reliable Supply
  1 June 2018 | Production and Operations Management, Vol. 27, No. 6
- The design of a reliable and robust hierarchical health service network using an accelerated Benders decomposition algorithm
  European Journal of Operational Research, Vol. 265, No. 3
- Ripple effect in the supply chain: an analysis and recent literature
  18 October 2017 | International Journal of Production Research, Vol. 56, No. 1-2
- OR/MS Methods for Structural Dynamics in Supply Chain Risk Management
  8 November 2017
- Advancements in continuous approximation models for logistics and transportation systems: 1996–2016
  Transportation Research Part B: Methodological, Vol. 107
- Reliable Biomass Supply Chain Design under Feedstock Seasonality and Probabilistic Facility Disruptions
  18 November 2017 | Energies, Vol. 10, No. 11
- PRIORITIZATION OF PETROLEUM SUPPLY CHAINS’ DISRUPTION MANAGEMENT STRATEGIES USING COMBINED FRAMEWORK OF BSC APPROACH, FUZZY AHP AND FUZZY CHOQUET INTEGRAL OPERATOR
  27 October 2017 | Journal of Business Economics and Management, Vol. 18, No. 5
- Literature review on disruption recovery in the supply chain
  1 June 2017 | International Journal of Production Research, Vol. 55, No. 20
- Resilient facility location against the risk of disruptions
  Transportation Research Part B: Methodological, Vol. 104
- Design of a reliable hierarchical location-allocation model under disruptions for health service networks: A two-stage robust approach
  Computers & Industrial Engineering, Vol. 109
- Introducing capacities in the location of unreliable facilities
  European Journal of Operational Research, Vol. 259, No. 1
- Simulation-based ripple effect modelling in the supply chain
  6 January 2017 | International Journal of Production Research, Vol. 55, No. 7
- Agility and Proximity Considerations in Supply Chain Design
  Michael K. Lim,
  Ho-Yin Mak,
  Zuo-Jun Max Shen
  8 April 2016 | Management Science, Vol. 63, No. 4
- Turn bad into good: Using transshipment-before-buyback for disruptions of stochastic demand
  International Journal of Production Economics, Vol. 185
- A Continuum Approximation Approach to the Dynamic Facility Location Problem in a Growing Market
  Xin Wang,
  Michael K. Lim,
  Yanfeng Ouyang
  1 June 2016 | Transportation Science, Vol. 51, No. 1
- Operations and Supply Chain Strategy
  21 July 2016
- Facility Location Planning and Network Design
  21 July 2016
- Minimization of disruption-related return flows in the supply chain
  International Journal of Production Economics, Vol. 183
- Integrated Modeling for Location Analysis
  18 October 2016 | Foundations and Trends in Technology, Information and Operations Management, Vol. 9, No. 1-2
- Disaster Management from a POM Perspective: Mapping a New Domain
  1 October 2016 | Production and Operations Management, Vol. 25, No. 10
- Disruption-driven supply chain (re)-planning and performance impact assessment with consideration of pro-active and recovery policies
  Transportation Research Part E: Logistics and Transportation Review, Vol. 90
- OR/MS models for supply chain disruptions: a review
  15 December 2015 | IIE Transactions, Vol. 48, No. 2
- Structural quantification of the ripple effect in the supply chain
  15 June 2015 | International Journal of Production Research, Vol. 54, No. 1
- Disruptions in supply chains and recovery policies: state-of-the art review
  IFAC-PapersOnLine, Vol. 49, No. 12
- Reliable Facility Location Design Under Uncertain Correlated Disruptions
  Mengshi Lu,
  Lun Ran,
  Zuo-Jun Max Shen
  19 May 2015 | Manufacturing & Service Operations Management, Vol. 17, No. 4
- Emergency facility location under random network damage: Insights from the Istanbul case
  Computers & Operations Research, Vol. 62
- When centers can fail: A close second opportunity
  Computers & Operations Research, Vol. 62
- Collaborative forecasting, inventory hedging and contract coordination in dynamic supply risk management
  European Journal of Operational Research, Vol. 245, No. 1
- Infrastructure deployment under uncertainties and competition: The biofuel industry case
  Transportation Research Part B: Methodological, Vol. 78
- Flow control in time-varying, random supply chains
  Transportation Research Part E: Logistics and Transportation Review, Vol. 77
- Retail supply chain network design under operational and disruption risks
  Transportation Research Part E: Logistics and Transportation Review, Vol. 75
- Supply Chain Design With Disruption Considerations: Review of Research Streams on the Ripple Effect in the Supply Chain
  IFAC-PapersOnLine, Vol. 48, No. 3
- Sustainable and Resilient Supply Chain Network Design under Disruption Risks
  29 September 2014 | Sustainability, Vol. 6, No. 10
- Optimal distribution (re)planning in a centralized multi-stage supply network under conditions of the ripple effect and structure dynamics
  European Journal of Operational Research, Vol. 237, No. 2
- Reliable p-median facility location problem: two-stage robust models and algorithms
  Transportation Research Part B: Methodological, Vol. 64
- The Ripple effect in supply chains: trade-off ‘efficiency-flexibility-resilience’ in disruption management
  28 November 2013 | International Journal of Production Research, Vol. 52, No. 7
- A supporting station model for reliable infrastructure location design under interdependent disruptions
  Transportation Research Part E: Logistics and Transportation Review, Vol. 60
- Dual problem formulation and its application to optimal redesign of an integrated production–distribution network with structure dynamics and ripple effect considerations
  International Journal of Production Research, Vol. 51, No. 18
- A Supporting Station Model for Reliable Infrastructure Location Design under Interdependent Disruptions
  Procedia - Social and Behavioral Sciences, Vol. 80
- Collaborative Forecasting, Inventory Hedging and Contract Coordination in Dynamic Supply Risk Management
  SSRN Electronic Journal, Vol. 175
- Agility and Proximity Considerations in Supply Chain Design - An Analytical Approach
  SSRN Electronic Journal, Vol. 36
- OR/MS Models for Supply Chain Disruptions: A Review
  SSRN Electronic Journal, Vol. 25

cover image Manufacturing & Service Operations Management

Volume 15, Issue 2

Spring 2013

Pages 165-341

Article Information

Supplemental Material

Metrics

Information

Received:September 03, 2011
Accepted:August 10, 2012
Published Online:December 14, 2012

Cite as

Michael K. Lim, Achal Bassamboo, Sunil Chopra, Mark S. Daskin, (2012) Facility Location Decisions with Random Disruptions and Imperfect Estimation. Manufacturing & Service Operations Management 15(2):239-249.

https://doi.org/10.1287/msom.1120.0413

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Facility Location Decisions with Random Disruptions and Imperfect Estimation

Supplemental Material

Volume 15, Issue 2

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News