A profit-maximization location-capacity model for designing a service system with risk of service interruptions

作者：Hoseinpour Pooya; Ahmadi Javid Amir

来源：Transportation Research Part E: Logistics and Transportation Review , 2016, 96: 113-134.

DOI：10.1016/j.tre.2016.08.004

• Location-allocation problem
• Service system design
• Congested network
• Queue systems with service interruptions
• Mixed-integer nonlinear optimization
• Lagrangian relaxation

This paper considers the design of an immobile service system in which each facility's service process is subject to the risk of interruptions. The location-capacity decisions and allocations are simultaneously made to maximize the difference between the service provider's profit and the sum of customers' transportation and waiting costs. An efficient Lagrangian-based solution algorithm is developed, which solves large-sized instances with up to 50 service facilities and 500 customers in a few seconds. Several sensitivity analyses and managerial insights are presented. The model is also applied to a case study on a logistics network design problem in the zinc mining industry.

• 出版日期2016-12