Korean Management Science Review (경영과학)
- Volume 15 Issue 1
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- Pages.33-47
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- 1998
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- 1225-1100(pISSN)
A Study of Facility Location Model Under Uncertain Demand
수요가 불확실한 경우의 장소입지 결정모형 연구
Abstract
The facility location problem considered here is to determine facility location sites under future's uncertain demand. The objective of this paper is to propose a solution method and algorithm for a two-stage stochastic facility location problem. utilizing the Benders decomposition method. As a two-stage stochastic facility location problem is a large-scale and complex to solve, it is usually attempted to use a mean value problem rather than using a stochastic problem. Thus, the other objective is to study the relative error of objective function values between a stochastic problem and a mean value problem. The simulation result shows that the relative error of objective function values between two problems is relatively small, when a feasibility constraint is added to a facility location model.
Keywords