The stochastic p-median problem with unknown cost probability distribution

The stochastic p-median problem with unknown cost probability distribution

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Article ID: iaor20102940
Volume: 37
Issue: 2
Start Page Number: 135
End Page Number: 141
Publication Date: Mar 2009
Journal: Operations Research Letters
Authors: , ,
Abstract:

We want to find the location of p facilities which minimize the expected total cost, when the cost for using a facility is a stochastic variable with unknown probability distribution. Using the method of the asymptotic approximations the expected optimal value of the allocation variables is shown to be a multinomial Logit model.

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