Article ID: | iaor20042972 |
Country: | Netherlands |
Volume: | 46 |
Issue: | 2 |
Start Page Number: | 313 |
End Page Number: | 319 |
Publication Date: | Apr 2004 |
Journal: | Computers & Industrial Engineering |
Authors: | Hwang Heung-Suk |
Keywords: | inventory |
Most of the previous works on classication location models are based on the assumption that the value (or utility) of inventory remains constant over time. In this study, a special case of the stochastic set-covering location problem is studied for both ameliorating and deteriorating items. The objective of this study is to determine the minimum number of storage facilities among a discrete set of location sites so that the probability of each customer being covered is not less than a critical value. We have formulated this problem using the stochastic set-covering problem, which can be solved via the 0–1 programming method. We have also developed a computer program for this problem and the results of a set of sample problems for fish culture storage and supply center will show the impact of the ameliorating and deteriorating rates on the location problem. For further study, a graphical user-interface with visualization for input and output needs is to be developed.