Article ID: | iaor20082913 |
Country: | United States |
Volume: | 55 |
Issue: | 5 |
Start Page Number: | 966 |
End Page Number: | 975 |
Publication Date: | Sep 2007 |
Journal: | Operations Research |
Authors: | Wang Jiamin |
Keywords: | networks |
This study extends the classical network median problem by considering the stochastic nature of demand. Assuming that the demand weights associated with nodes are independent discrete random variables, we introduce a chance-constrained programming model to define a β-reliable median of the network. It is shown that the β-reliable median problem is NP-hard. Exact solution procedures and a normal approximation algorithm are developed to search for the β-reliable median. Their performance is evaluated by computational experiments.