2009
DOI: 10.1111/j.1540-5915.2009.00253.x
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Locating Facilities in the Presence of Disruptions and Incomplete Information*

Abstract: In this article, we analyze a location model where facilities may be subject to disruptions. Customers do not have advance information about whether a given facility is operational or not, and thus may have to visit several facilities before finding an operational one. The objective is to locate a set of facilities to minimize the total expected cost of customer travel. We decompose the total cost into travel, reliability, and information components. This decomposition allows us to put a value on the advance i… Show more

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Cited by 65 publications
(29 citation statements)
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“…Snyder and Daskin (2005) study facility location in which some of cases with definite probability become unusable and assume that customers would be served by facilities which are not affected by disruption. Berman et al (2009) and Shen et al (2011) who are inspired by this model developed new location problem models with disruption consideration. They supposed that facilities are not completely reliable and customers do not have any information about a facility being operational or not and it is supposed that every facility may be non-operation by a definite probability.…”
Section: Literaturementioning
confidence: 99%
“…Snyder and Daskin (2005) study facility location in which some of cases with definite probability become unusable and assume that customers would be served by facilities which are not affected by disruption. Berman et al (2009) and Shen et al (2011) who are inspired by this model developed new location problem models with disruption consideration. They supposed that facilities are not completely reliable and customers do not have any information about a facility being operational or not and it is supposed that every facility may be non-operation by a definite probability.…”
Section: Literaturementioning
confidence: 99%
“…Drezner (1987) addressed a similar problem and suggested a heuristic. Lee (2001) The problem without the advanced information on the status of the facilities was introduced by Berman et al (2009). They focused on studying the effects of reliability and information on the properties of the optimal solution.…”
Section: Unreliable Facilitiesmentioning
confidence: 99%
“…They focused on studying the effects of reliability and information on the properties of the optimal solution. When the failure of facilities to receive customers for service is due to congestion at the facilities, Berman et al (2007a) considered the problem studied by the earlier Berman et al (2009) using queuing approximations. We note that both of these models assume that customers' search strategy consists of always traveling to the closest unexamined facility, which is not necessarily an optimal strategy.…”
Section: Unreliable Facilitiesmentioning
confidence: 99%
“…In these cases, it is reasonable to expect that, after finding their facility unavailable, customers go directly to a new facility from there, instead of traveling back home and choosing their next closest facility for being served. The models considering this assumption are referred to as facility location with incomplete information (see, Berman et al [10]). …”
Section: Introductionmentioning
confidence: 99%