Reliable Location-Allocation Problem with Correlated Geographical Failure Probability

In this study, we have presented a mixed integer programming model for the Reliable location-allocation problem. The model determines the located distribution centers and allocated customers to minimize total network cost. Furthermore, we used to improve the reliability of the network using correlated geographical failure probability. The correlated failure probability of the arcs between the distribution centers is estimated using a spatial statistic model. Finally, we solve the model using CPLEX solver version 12.5. A distribution company in the North-Khorasan province is used as an example for this model. The numerical results have shown improving the failure probability can reduce the total cost of the supply chain network.

Keywords:

Supply Chain , Reliability , Failure probability , Location-Allocation