An approximation algorithm for a facility location problem with stochastic demands and inventories

✍ Scribed by A.F. Gabor; J.C.W. van Ommeren

• Publisher: Elsevier Science
• Year: 2006
• Tongue: English
• Weight: 176 KB
• Volume: 34
• Category: Article
• ISSN: 0167-6377
• DOI: 10.1016/j.orl.2005.04.009

✦ Synopsis

We propose a 2-approximation algorithm for a facility location problem with stochastic demands. At open facilities, inventory is kept such that arriving requests find a zero inventory with (at most) some pre-specified probability. Costs incurred are expected transportation costs, facility operating costs and inventory costs.