Designing a Mathematical Model to Solve the Uncertain Facility Location Problem Using C Stochastic Programming Method

Abstract

Locating facilities such as factories or warehouses is an important and strategic decision for any organization. Transportation costs, which often form a significant part of the price of goods offered, are a function of the location of the plans. To determine the optimal location of these designs, various methods have been proposed so far, which are generally definite (non-random). The main aim of the study, while introducing these specific algorithms, is to suggest a stochastic model of the location problem based on the existing models, in which random programming, as well as programming with random constraints are utilized. To do so, utilizing programming with random constraints, the stochastic model is transformed into a specific model that can be solved by using the latest algorithms or standard programming methods. Based on the results acquired, this proposed model permits us to attain more realistic solutions considering the random nature of demand. Furthermore, it helps attain this aim by considering other characteristics of the environment and the feedback between them.