Geoscience Reference
In-Depth Information
Chapter 11
Multi-Period Facility Location
Stefan Nickel and Francisco Saldanha da Gama
Abstract
In this chapter, we cover basic aspects related with facility location
problems involving time dependent parameters. The emphasis is put on problems
defined over a multi-period finite planning horizon. A brief overview of continuous
and network problems is presented. Nevertheless, most of the chapter focus on
a discrete setting. Basic modeling aspects and solution techniques are discussed.
Additionally, some features of practical relevance are considered. The value of the
multi-period solution is introduced as a measure for the relevance of considering
a multi-period modeling framework instead of a static one. Current challenges and
future trends on the topic are discussed.
Keywords
Discrete models Multi-period facility location Value of the multi-
period solution
11.1
Introduction
Facility location decisions are usually made taking into account the values of some
parameters, such as the setup costs for the facilities and the demand levels. If
variations are predictable for such values, it may be desirable to plan in advance for
future adjustments in the location of facilities and in other related decisions (e.g.,
shipment decisions). In this case, locating a set of facilities becomes a question not
only of “where” but also of “when”. A new dimension is introduced in the decision
space: the time. This is the topic of the current chapter.
