An Integrated Approach for Reliable Facility Location/Network Design Problem with Link Disruption

Proposing a robust designed facility location is one of the most effective ways to hedge against unexpected disruptions and failures in a transportation network system. This paper considers the combined facility location/network design problem with regard to transportation link disruptions and develops a mixed integer linear programming formulation to model it. With respect to the probability of link disruptions, the objective function of the model minimizes the total costs, including location costs, link construction costs and also the expected transportation costs. An efficient hybrid algorithm based on LP relaxation and variable neighbourhood search metaheuristic is developed in order to solve the mathematical model. Numerical results demonstrate that the proposed hybrid algorithm has suitable efficiency in terms of duration of solution time and determining excellent solution quality.