In this paper, we study how the uncapacitated facility location problem is transformed into a two-stage stochastic program with recourse when uncertainty on demand, selling prices, production and transportation costs are introduced. We then present a dual-based procedure and indicate how the dual-descent and primal-dual adjustment procedures proposed by D. Erlenkotter (1978) in the static case can be made monotonically improving in the stochastic case. Results of computer experiments are reported.
No takes yet. Share an insight, caveat, or question.
Louveaux et al. (1992) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: