A dual-based procedure for stochastic facility location

In this paper, the authors study how the uncapacitated facility location problem is transformed into a two-stage stochastic program with recourse when uncertainty on demand, selling proces, production and transportation costs are introduced. They then present a dual-based procedure and indicate how the dual-descent and primal-dual adjustment procedures proposed by D. Erlenkotter in the static case can be made monotonically improving in the stochastic case. Results of computer experiments are reported.