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Interscience Management Review

Abstract

Supply chains are subject to various types of disruptions. In this paper, we analyze the problem of locating facilities in a supply chain under random disruptions on facilities. We present a new reliable location model called ‘the α-reliable Minimax regret’ which we apply it to the capacitated reliable fixed charge location problem. The model minimizes the worst-case regret with respect to a subset of worst-case scenarios whose collective probability of occurrence is at least α. The model is solved by CPLEX. Computational Results show it is efficient.

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