The stochastic interdiction median problem with disruption intensity levels

Scaparra, Maria Paola and Losada, Chaya and Church, Richard L. and Daskin, Mark S. (2012) The stochastic interdiction median problem with disruption intensity levels. Annals of Operations Research . ISSN 0254-5330. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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In this paper we introduce a stochastic interdiction problem for median systems in which the operational state of the system's disrupted elements in the aftermath of the disruption is uncertain as it is based on the intensity of the disruption. We assume that a disruption disables a facility with a given probability and this probability depends on the intensity of the disruption. The objective of this problem is to identify which disruption scenario entails a maximum overall traveling distance in serving all customers. We show that the initial two stage stochastic formulation can be reformulated into a deterministic counterpart whose size is polynomial in the number of facilities and intensity levels. Then, our ensuing efforts to solve the problem e±ciently focus on studying alternative deterministic formulations that allow the solution of realistic size instances of the model. We observe that the most efficient of the deterministic formulations provide great scalability with respect to variations in the input parameters and size of the instances solved. Finally, we analyze the robustness of the optimal solutions due to misestimations in the probability functions that relate disruption intensity levels with the probabilities of facility survivability.

Item Type: Article
Uncontrolled keywords: Facility location – Supply chain reliability – Stochastic interdiction
Subjects: Q Science > Operations Research - Theory
Divisions: Faculties > Social Sciences > Kent Business School > Management Science
Depositing User: Maria Paola Scaparra
Date Deposited: 25 Jun 2012 10:14
Last Modified: 06 Jun 2014 10:57
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