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PRODUCTION AND OPERATIONS MANAGEMENT …

Facility Location: A Robust Optimization ApproachOpher Baron, Joseph MilnerRotman School of MANAGEMENT , University of Toronto, Toronto, Ontario M5S 3E6, NaseraldinDepartment of Industrial Engineering and MANAGEMENT , ORT Braude College of Engineering, Karmiel 21982, Israel, this research, we apply robust optimization (RO) to the problem of locating facilities in a network facing uncertaindemand over multiple periods. We consider a multi-period fixed-charge network location problem for which we find (1)the number of facilities, their location and capacities, (2) the PRODUCTION in each period, and (3) allocation of demand tofacilities.

r 2010 Production and Operations Management Society. inventory, truss-design, portfolio selection, and sched-uling. We give a brief tutorial on RO in section 2. This paper contributes to the literature by formu-lating robust models for a facility location problem,

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