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Maria Albareda-Sambola (Universitat Politècnica de Catalunya, Terrassa, Barcelona), Mercedes Landete (Operations Research Center, University Miguel Hernández of Elche), Juan F. Monge (Operations Research Center, University Miguel Hernández of Elche) and José L. Sainz-Pardo (Operations Research Center, University Miguel Hernández of Elche)

Abstract:

Introducing capacities in the reliable fixed charge location problem is a complex task since successive failures might yield in high facility overloads. Ideally, the goal consists in minimizing the total cost while keeping the expected facility overloads under a given threshold. Several heuristic approaches have been proposed in the literature for dealing with this goal. In this paper, we present the first exact approach for this problem, which is based on a cutting planes algorithm. Computational results illustrate its good performance.