Two-level capacitated facility location problem under disruption and fortification
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Abstract
A two-level capacitated facility location problem (TCFLP) is a facility location problem that limits capacity and mainly considers the products shipped between two consecutive levels. Nowadays, in some situations, main facilities may be at risk of disruptions that affect their failure, which may lead to a higher cost of backup products or use of backup facilities. This situation can be prevented by fortifying the main facilities with a fixed budget. In this paper, we have proposed an integer nonlinear programming model for TCFLP that the main facilities were addressed to fortify under the risk of disruption. Furthermore, the linearization technique was used to reduce the algorithm’s complexity for solving it. Moreover, a numerical example was illustrated, the results of the simulated small problems were tested with the Gurobi optimizer, and the sensitivity analysis was also provided.
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