Optimization Modeling of Facility Location Problem in Crisis Management Based on Network Risk Bottleneck and Location Risk

In crisis management, where to locate the emergency facilities has become one of the most significant problems in decision-making. In most existing literature, people used to neglect the real situation of distribution network for the reason that the network is safe in ordinary situation. In fact, candidate risks always exist during the process of transportation and it will greatly influence the logistics service level when crisis happens. In this paper, both the risk bottleneck of the distribution network and the location risk are considered. Then the optimization modeling and the algorithm are studied. We suppose that each edge in the network has two attributes: length and risk bottleneck. The security cost in network is a no-decreasing function about the maximum risk degree of all edges in the networks. Cost minimization is the system objective, including facilities setting up cost and transportation cost as well as an additional security cost. At the end of this paper, an algorithm is proposed to solve this model.