Oded
Berman (University of Toronto,
Short
Biography
Oded
Berman is professor of Operations Research / Management Science at the
Lecture
to be presented in EWI 2007
Title
Stochastic
Facility Location and Capacity Problems
Abstract
We
discuss location problems of fixed facilities with congestion. Congestion occurs
when requests for service occur in a probabilistic fashion and when the service
facilities do not have sufficient capacity to respond immediately to the
requests. Since facilities are fixed customers travel to the closest facilities
to obtain service.
The most general problem is to simultaneously optimize three sets of decision
variables: (i) the number of facilities; (ii) the location of the facilities;
and (iii) the service capacity of the facilities. The optimization is subject to
two types of service level constraints: (1) upper bound constraint on the travel
distance of customers to facilities; and (2) upper bound constraint on the
waiting times of customers at the facilities.
We first present several location problems that deal with only two of the three
possible sets of decision variables and conclude with a discussion of the most
general problem.