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A tri-level optimization model for facility location-protection problem considering design and redesign decisions under disruption

A tri-level optimization model for facility location-protection problem considering design and... Fortification-interdiction models provide system designers with a broader perspective to identify and protect vital components. Based on this concept, the authors examine how disruptions impact critical supply systems and propose the most effective protection strategies based on three levels of decision-makers. This paper aims to investigate location and fortification decisions at the first level. Moreover, a redesign problem is presented in the third level to locate backup facilities and reallocate undisrupted facilities following the realization of the disruptive agent decisions at the second level.Design/methodology/approachTo address this problem, the authors develop a tri-level planner-attacker-defender optimization model. The model minimizes investment and demand satisfaction costs and alleviates maximal post-disruption costs. While decisions are decentralized at different levels, the authors develop an integrated solution algorithm to solve the model using the column-and-constraint generation (CCG) method.FindingsThe model and the solution approach are tested on a real supply system consisting of several hospitals and demand areas in a region in Iran. Results indicate that incorporating redesign decisions at the third level reduces maximum disruption costs.Originality/valueThe paper makes the following contributions: presenting a novel tri-level optimization model to formulate facility location and interdiction problems simultaneously, considering corrective measures at the third level to reconfigure the system after interdiction, creating a resilient supply system that can fulfill all demands after disruptions, employing a nested CCG method to solve the model. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Kybernetes Emerald Publishing

A tri-level optimization model for facility location-protection problem considering design and redesign decisions under disruption

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References (41)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0368-492X
DOI
10.1108/k-09-2022-1342
Publisher site
See Article on Publisher Site

Abstract

Fortification-interdiction models provide system designers with a broader perspective to identify and protect vital components. Based on this concept, the authors examine how disruptions impact critical supply systems and propose the most effective protection strategies based on three levels of decision-makers. This paper aims to investigate location and fortification decisions at the first level. Moreover, a redesign problem is presented in the third level to locate backup facilities and reallocate undisrupted facilities following the realization of the disruptive agent decisions at the second level.Design/methodology/approachTo address this problem, the authors develop a tri-level planner-attacker-defender optimization model. The model minimizes investment and demand satisfaction costs and alleviates maximal post-disruption costs. While decisions are decentralized at different levels, the authors develop an integrated solution algorithm to solve the model using the column-and-constraint generation (CCG) method.FindingsThe model and the solution approach are tested on a real supply system consisting of several hospitals and demand areas in a region in Iran. Results indicate that incorporating redesign decisions at the third level reduces maximum disruption costs.Originality/valueThe paper makes the following contributions: presenting a novel tri-level optimization model to formulate facility location and interdiction problems simultaneously, considering corrective measures at the third level to reconfigure the system after interdiction, creating a resilient supply system that can fulfill all demands after disruptions, employing a nested CCG method to solve the model.

Journal

Kybernetes – Emerald Publishing

Published: Oct 30, 2024

Keywords: Tri-level programming; Facility fortification-interdiction; Facility location; Column-and-constraint generation

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