Robust Optimization Model for the Capacitated Facility Location and Transportation Network Design Problem

This paper investigates capacitated facility location-network design problem under uncertainty. A stochastic probust optimizing approach is applied to face the uncertainty. The developed model optimizes location for predefined number of capacitated facilities and underlying transportation network in such a that way total expected costs of links construction, facility construction, and transportation be minimized while the relative regret in each scenario must be no greater than an positive digit ( 0 p ≥ ). Uncertainty is characterized by given finite number of scenarios. Moreover, some basic behaviors of the problem are concluded through sensitive analysis from several random generated test problems.