An evolutionary programming approach for solving the capacitated facility location problem with risk pooling

Ali Diabat, T. Aouam, L. Ozsen

    Research output: Contribution to journalArticle

    Abstract

    In this paper, we propose a genetic algorithm as an alternative technique for solving the capacitated facility location problem with risk pooling (CLMRP). The CLMRP is a joint location-inventory problem involving a single supplier and multiple retailers that face stochastic demand. Due to the stochasticity of demand associated with each retailer, risk pooling may be achieved by allowing some retailers to serve as distribution centres (DCs). This is a combinatorial optimisation problem that has been shown to be NP-hard. A genetic algorithm that is computationally very efficient is developed to solve the problem. A computational experiment is conducted to test the performance of the developed technique and computational results are reported. The algorithm can easily find optimal or near optimal solutions for benchmark test problems from the literature, where the Lagrangian relaxation approach was used.

    Original languageEnglish (US)
    Pages (from-to)389-405
    Number of pages17
    JournalInternational Journal of Applied Decision Sciences
    Volume2
    Issue number4
    DOIs
    StatePublished - Jan 1 2009

    Fingerprint

    Evolutionary programming
    Risk pooling
    Location problem
    Facility location
    Retailers
    Genetic algorithm
    NP-hard
    Lagrangian relaxation
    Distribution center
    Combinatorial optimization
    Benchmark
    Optimal solution
    Suppliers
    Stochastic demand
    Optimization problem
    Experiment

    Keywords

    • Evolutionary programming
    • Genetic algorithms
    • Location-inventory problems
    • Meta-heuristics
    • Non-linear integer programming
    • Supply chain management

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Strategy and Management
    • Management Science and Operations Research
    • Information Systems and Management

    Cite this

    An evolutionary programming approach for solving the capacitated facility location problem with risk pooling. / Diabat, Ali; Aouam, T.; Ozsen, L.

    In: International Journal of Applied Decision Sciences, Vol. 2, No. 4, 01.01.2009, p. 389-405.

    Research output: Contribution to journalArticle

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