Designing robust coverage networks to hedge against worst-case facility losses

Designing robust coverage networks to hedge against worst-case facility losses

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Article ID: iaor20108333
Volume: 209
Issue: 1
Start Page Number: 23
End Page Number: 36
Publication Date: Feb 2011
Journal: European Journal of Operational Research
Authors: ,
Keywords: facilities, programming: integer
Abstract:

In order to design a coverage-type service network that is robust to the worst instances of long-term facility loss, we develop a facility location‐interdiction model that maximizes a combination of initial coverage by p facilities and the minimum coverage level following the loss of the most critical r facilities. The problem is formulated both as a mixed-integer program and as a bilevel mixed-integer program. To solve the bilevel program optimally, a decomposition algorithm is presented, whereby the original bilevel program is decoupled into an upper level master problem and a lower level subproblem. After sequentially solving these problems, supervalid inequalities can be generated and appended to the upper level master in an attempt to force it away from clearly dominated solutions. Computational results show that when solved to optimality, the bilevel decomposition algorithm is up to several orders of magnitude faster than performing branch and bound on the mixed-integer program.

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