A risk-averse location-protection problem under intentional facility disruptions: A modified hybrid decomposition algorithm. (June 2018)

• Record Type: Journal Article
• Authors: Jalali, Sajjad; Seifbarghy, Mehdi; Niaki, Seyed Taghi Akhavan
• Is Part Of: Transportation research. Volume 114(2018)
• Page Start: 196
• Page End: 219
• Publication Date: 2018-06
• Subjects: Facility location-protection problem -- Conditional value-at-risk -- Bi-level programming -- Decomposition algorithm -- Sample average approximation -- Game theory; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2018.04.004
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: There is a Stackelberg game between a supply chain's designer and an interdictor. Our model is more applicable to the design stage of a supply chain structure. We develop a new accelerated hybrid decomposition algorithm. The results show both well-known and unexpected findings. Abstract: The rising disruptions of interdictors force supply chains' designers to embody the protection decisions when locating the facilities. In the presence of variability in the intensity of disruptions, a risk measure is incorporated into the decision-making. The designer-interdictor bi-level problem, therefore, optimizes the joint location and protection decisions with respect to the conditional value-at-risk. This configuration has been absent from the literature. An accelerated modified Benders decomposition algorithm is developed and enhanced by being hybridized with a sample average approximation-based genetic algorithm. We examine how this new configuration influences the optimal solutions and assess the effectiveness of the proposed method.