Dynamic Facility Location with Stochastic Demands

  • Martin Romauch
  • Richard F. Hartl
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3777)


In this paper, a Stochastic Dynamic Facility Location Problem (SDFLP) is formulated. In the first part, an exact solution method based on stochastic dynamic programming is given. It is only usable for small instances. In the second part a Monte Carlo based method for solving larger instances is applied, which is derived from the Sample Average Approximation (SAA) method.


Travelling Salesman Problem Stochastic Program Inventory Level Stochastic Dynamic Program Stochastic Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Bertsekas, D.P.: Dynamic Programming and Optimal Control. Athena Scientific, Belmont (1995)zbMATHGoogle Scholar
  2. 2.
    Hammer, P.L.: Annals of Operations Research: Recent Developments in the Theory and Applications of Location Models 1/2. Kluwer Academic Publishers, Dordrecht (2002)Google Scholar
  3. 3.
    Homem-de-Mello, T.: Variable-Sample Methods for Stochastic Optimimization. ACM Trans. on Modeling and Computer Simulation (2003)Google Scholar
  4. 4.
    Jaillet, P.: Probabilistic Travelling Salesman Problems. Ph.D. thesis, MIT (1985)Google Scholar
  5. 5.
    Kleywegt, A., Shapiro, A., Hohem-de-Mello, T.: The Sample Average Method for Stochastic Discrete Optimization. SIAM J. Optim. 12 (2001/02)Google Scholar
  6. 6.
    Laporte, G., Louveaux, F., Van Hamme, L.: Exact Solution to a Location Problem with Stochatic Demands. Transportation Science 28 (1994)Google Scholar
  7. 7.
    Makhorin, A.: GNU Linear Programming Kit - Reference Manual - Version 4.1, Department for Applied Informatics, Moscow Aviation Institute, Moscow, Russia (2003)Google Scholar
  8. 8.
    Melo, M.T., Nickel, S., Saldanha da Gama, F.: Large-Scale Models for Dynamic Multi-Commodity Capacitated Facility Location, Berichtsreihe des Fraunhofer Inststituts für Techno- und Wirtschaftsmathematik (ITWM), Kaiserslautern (2003) ISSN 1434-997Google Scholar
  9. 9.
    Hesse Owen, S., Daskin, M.S.: Strategic Facility Location: A Review. European Journal of Operational Research 111 (1998)Google Scholar
  10. 10.
    Santoso, T., Ahmed, S., Goetschalckx, M., Shapiro, J.: A Stochastic Programming Approach for Supply Chain Network Design under Uncertainty, The Stochastic Programming E-Print Series, (SPEPS) (2003)Google Scholar
  11. 11.
    Schneeweiß, C.: Dynamisches Programmieren. Physica-Verlag, Heidelberg (1974)zbMATHGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2005

Authors and Affiliations

  • Martin Romauch
    • 1
  • Richard F. Hartl
    • 1
  1. 1.Department of Management ScienceUniversity of ViennaViennaAustria

Personalised recommendations