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On the Robust Capacitated Facility Location and Design Problem with Elastic Demand

Tatyana V. Levanova, Alexander Y. Gnusarev, Ekaterina A. Rubtsov

Abstract



In the capacitated facility location and design problem with elastic demand, a new Company plans to open service facilities. The Company fights with a Competitor for a serviced share of all customer demand. This share varies elastically depending on the location and design
of the facilities being opened. In this formulation, customer demand is known and assumed to be unchanged. However, in real-world situations, when planning for a certain period, the demand changes, and instead of exact values, its estimates can be given. Therefore,
robust location problems have appeared that take this fact into account. In this paper, we formulate a new robust model of the capacitated facility location and design problem with elastic demand. A problem-specified version of the Variable Neighborhood Search algorithm
is developed. To organize the search for a solution, special types of neighborhoods are constructed. The results of computational experiments are performed.

Keywords


robustness, discrete facility location, elastic demand, variable neighborhood search.

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