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We note that the dual of ( L2a )is:
( D L2a ):
min π
such that
π ≥ R ( x, y, z ; δ q ) ,
for q =1 , 2 , ···,Q.
(22)
4.3 An Integrated Formulation
With the optimal value of the Level 3 formulation defined as R ( x, y, z ; δ ) asso-
ciated with a given ( x, y, z )and δ , we can consider the Level 3 optimization as
implicit within the Level 2 optimization. Thus, our model can be considered as
a bi-level programming problem. By adopting a column-generation formulation
for Level 2, the corresponding bi-level programme can be further re-formulated
as an integrated model as follows:
x,y,z ; δ,π
i∈I
( M ):
min
( f i y i + h i z i )+ π
subject to (1) to (7) and
π
R ( x, y, z ; δ )
δ
∈F∈
( x, y, z ) .
(23)
The formulations for Level 2 and 3 are implicitly included as the constraints (23).
We note, of course, that (23) contains many constraints (even if we consider only
the δ 's corresponding to the extreme points of F∈ ( x, y, z )), and the righthand
sides are obtainable only by solving NP-hard location-allocation problems.
5 A Dual Ascent Solution Approach
In this section, we present a dual ascent solution approach for the integrated
model for the case when no (re-)establishment of centres is possible after the
disaster. This corresponds to the situation when the time-frame of the recovery
stage is quite short.
5.1 Evaluation of
R
(
x, y, z
;
δ
)
In this case, the Level 3 formulation ( L 3) can be simplified as:
r,s,t,w
i∈I
H i s i +
i∈I
( L3a ):
min
T ik t ik
k∈I
subject to (12), (14), (15), (16), (17) and (19).
We introduce a new set of variables v ij = p j r ij representing the number of
people of community j accommodated at centre i . As discussed in Subsection 4.1,
for fixed values of y,δ and z ,( L3a ) becomes a min-cost network flow problem for
the network G =(
J )), where I 1 = I 2 = I
and node n represents the source of supply for new inventory. The nodes in I 1
{
I 1
n
}∪
I 2
J, (
{
I 1
n
I 2 )
( I 2 ×
 
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