A stochastic set-covering location model for both ameliorating and deteriorating items

Most of the previous works on classical location models are based on the assumption that the value (or utility) of inventory remains constant over time. In this study, a special case of the stochastic set-covering location problem is studied for both ameliorating and deteriorating items. The objective of this study is to determine the minimum number of storage facilities among a discrete set of location sites so that the probability of each customer being covered is not less than a critical value. We have formulated this problem using the stochastic set-covering problem, which can be solved via the 0-1 programming method. We have also developed a computer program for this problem and the results of a set of sample problems for fish culture storage and supply center will show the impact of the ameliorating and deteriorating rates on the location problem. For further study, a graphical user-interface with visualization for input and output needs is to be developed. (C) 2004 Elsevier Ltd. All rights reserved.