The Reliable Hierarchical Location-allocation Model under Heterogeneous Probabilistic Disruptions

This paper presents a novel reliable hierarchical location-allocation model where facilities are subjectto the risk of disruptions. Based on the relationship between various levels of system, a multi-levelmulti-flow hierarchy is considered. The heterogeneous probabilistic disruptions are investigated inwhich the constructed facilities have different site-dependent and independent failure rates. In theoccurrence of facility disruptions, to achieve system reliability, the mitigation operation is consideredin such a way as to reassign the demand nodes to other operational facilities that can provide services.The problem is modeled from both cost and risk perspectives such that the fixed installation cost aswell as the expected costs in normal disruption-free and disruptive conditions are minimized. ABenders decomposition algorithm is developed which seeks to find exact solution of the proposedmodel. Two efficient accelerating techniques including valid inequalities and knapsack inequalities arealso proposed to expedite the convergence of solution procedure. The numerical results illustrate theapplicability of the proposed model as well as the efficiency of the designed solution procedure.