FLEXIBLE FACILITY LOCATION-ALLOCATION DESIGN PROBLEM UNDER THE RISK OF DISRUPTIONS

Most of the conventional facility location-allocation (FLA) decision models assume that the facilities are always available or the demand is lost with facility disruption. Contrary to this conventional assumption, we... [ view full abstract ]

Most of the conventional facility location-allocation (FLA) decision models assume that the facilities are always available or the demand is lost with facility disruption. Contrary to this conventional assumption, we introduce the concept of the backup/secondary facilities that can satisfy the demand, if the primal facility can’t satisfy the demand due to its disruptions. We call it a flexible FLA (FFLA) model and consider two performance metrics, the total relevant costs and the expected amount of satisfied demand.  Using a multi-objective programming model, we investigate the effect of the backup/secondary facilities on the FLA design problem using a case study.