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Dynamic Facility Location with Stochastic Demand and Congestion


Dynamic Facility Location with Stochastic Demand and Congestion

Madani, Masoud (2018) Dynamic Facility Location with Stochastic Demand and Congestion. Masters thesis, Concordia University.

Text (application/pdf)
Masoud Madani, master thesis.pdf - Accepted Version


In this thesis, we study a multi-periodic facility location problem with stochastic demand to determine the optimal location, capacity selection and demands allocation of facilities within distinct time periods, while, each facility contains a server with a limited capacity. It causes facilities to experience a period of congestion, when not all arriving demands can be served immediately. Customers that arrive in this period might await service in a queue. This thesis perspective incorporates customers waiting costs as part of the objective. In this case, facilities do not utilize whole of the established capacity to ensure a maximum waiting time of the allocated customers. Firstly, a mathematical model is presented for a dynamic facility location problem with stochastic demand and congestion. The problem is setup as a network of spatially distributed queues and formulated as a nonlinear mixed integer program (MINLP). To transform the nonlinear congestion function to a piecewise linear, a linearization method is adapted. This method adds a set of inequalities to the model. We show that lifting this set of inequalities, with keeping generality of the method, reduces CPU times up to 3.5 times, on average. Moreover, a decent heuristic is proposed to solve the problem. Computational experiments indicate that the heuristic results in less costly solutions than them obtained by CPLEX algorithms, in 58% of relatively-difficult test problems.

Divisions:Concordia University > Gina Cody School of Engineering and Computer Science > Mechanical, Industrial and Aerospace Engineering
Item Type:Thesis (Masters)
Authors:Madani, Masoud
Institution:Concordia University
Degree Name:M.A. Sc.
Program:Industrial Engineering
Date:8 June 2018
Thesis Supervisor(s):Contreras, Ivan and Vidyarthi, Navneet
Keywords:Facility Location (FL), Congestion, Linearization, Valid Inequalities, Lifting Inequalities, Branch-and-Cut
ID Code:983852
Deposited On:16 Nov 2018 16:21
Last Modified:02 Apr 2019 20:03
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