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The Mean-Value-at-Risk Median Problem on a Network with Random Demand Weights

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Contributions to Location Analysis

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 281))

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Abstract

Dr. Zvi Drezner’s research career has touched on many areas of location analysis. We devote the first part of this chapter to summarizing Zvi’s vast contributions to the studies of the minimax and the maximum facility location problems. His relevant publications are grouped in terms of the characteristics of the problems investigated, including space, the number of facilities to locate, and completeness of information. In particular, we provide an overview of Zvi’s work in the deterministic planar minimax problems. The second part of the chapter is our own paper on a network median problem when demand weights are independent random variables. The objective of the model proposed is to locate a single facility so as to minimize the expected total demand-weighted distance subject to a constraint on the value-at-risk (VaR). The study integrates the expectation criterion with the VaR measure and links different median models with random demand weights. Methods are suggested to identify dominant points for the optimal solution. An algorithm is developed for solving the problem.

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Author information

Authors and Affiliations

  1. School of Economics and Management, Beijing University of Chemical Technology, Beijing, China

    Chunlin Xin

  2. College of Management, Long Island University Post, Brookville, NY, USA

    Jiamin Wang

Authors
  1. Chunlin Xin
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  2. Jiamin Wang
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Correspondence to Jiamin Wang .

Editor information

Editors and Affiliations

  1. Faculty of Management, University of New Brunswick, Fredericton, NB, Canada

    H. A. Eiselt

  2. Department of Electrical Engineering, Pontificia Universidad Católica de Chile Complex Engineering Systems Institute, Santiago, Chile

    Vladimir Marianov

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Xin, C., Wang, J. (2019). The Mean-Value-at-Risk Median Problem on a Network with Random Demand Weights. In: Eiselt, H., Marianov, V. (eds) Contributions to Location Analysis. International Series in Operations Research & Management Science, vol 281. Springer, Cham. https://doi.org/10.1007/978-3-030-19111-5_13

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