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An Approximation Algorithm for a Facility Location Problem with Inventories and Stochastic Demands

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Algorithmic Applications in Management (AAIM 2005)

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 3521))

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Abstract

In this article we propose, for any ε > 0, a 2(1 + ε)-approximation algorithm for a facility location problem with stochastic demands. At open facilities, inventory is kept such that arriving requests find a zero inventory with (at most) some pre-specified probability. The incurred costs are the expected transportation costs from the demand points to the facilities, the operating costs of the facilities and the investment in inventory.

AMS Classification: 68W25, 90B06, 60K30.

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Author information

Authors and Affiliations

  1. Faculty of Electrical Engineering, Mathematics and Computer Science, University of Twente, PO Box 217, 7500 AE, Enschede, The Netherlands

    Adriana F. Bumb & Jan-Kees C. W. van Ommeren

Authors
  1. Adriana F. Bumb
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  2. Jan-Kees C. W. van Ommeren
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Editor information

Editors and Affiliations

  1. IBM Almaden Research Center, 650 Harry Road, 95120, San Jose, CA,  

    Nimrod Megiddo

  2. The State Key Lab for Manufacturing Systems Engineering, 710049, Xi’an, P.R. China

    Yinfeng Xu

  3. Department of Computer Science, Montana State University, 59717, Bozeman, MT, USA

    Binhai Zhu

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© 2005 Springer-Verlag Berlin Heidelberg

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Bumb, A.F., van Ommeren, JK.C.W. (2005). An Approximation Algorithm for a Facility Location Problem with Inventories and Stochastic Demands. In: Megiddo, N., Xu, Y., Zhu, B. (eds) Algorithmic Applications in Management. AAIM 2005. Lecture Notes in Computer Science, vol 3521. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11496199_36

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  • DOI: https://doi.org/10.1007/11496199_36

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-26224-4

  • Online ISBN: 978-3-540-32440-9

  • eBook Packages: Computer ScienceComputer Science (R0)

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