Facility Location Under Uncertainty

Abstract

This chapter covers some of the existing knowledge on facility location under uncertainty. The goal is to provide the reader with essential tools for modeling and tackling problems in the area. To a large extent, the focus is put on discrete facility location problems. Several issues related with uncertainty are discussed. A distinction is made between problems in the areas of robust optimization, stochastic programming and chance-constrained programming. The presentation is complemented with several other aspects of relevance such as multi-stage stochastic programming models, scenario generation, and solution techniques. Several well-known facility location problems are used throughout the chapter for illustrative purposes.