Dynamic Facility Location with Stochastic Demands

Abstract. In this paper, a Stochastic Dynamic Facility Location Problem (SDFLP) is formulated. In the first part, an exact solution method based on stochastic dynamic programming is given. It is only usable for small instances. In the second part a Monte Carlo based method for solving larger instances is applied, which is derived from the Sample Average Approximation (SAA) method.

• Type: Conference
• Year: 2005
• Where: SAGA
• Authors: Martin Romauch, Richard F. Hartl
• Keywords: Exact Solution Method, SAGA 2005, Stochastic Dynamic Facility, Stochastic Dynamic Programming