Facility location dynamics: An overview of classifications and applications

In order to modify the current facility or develop a new facility, the dynamics of facility location problems (FLPs) ought to be taken into account so as to efficiently deal with changing parameters such as market demand, internal and external factors, and populations. Since FLPs have a strategic or long-term essence, the inherited uncertainty of future parameters must be incorporated in relevant models, so these models can be considered applicable and ready to implement. Furthermore, due to largely capital outlaid, location or relocation of facilities is basically considered as a long-term planning. Hence, regarding the way in which relevant criteria will change over time, decision makers not only are concerned about the operability and profitability of facilities for an extended period, but also seek to robust locations fitting well with variable demands. Concerning this fact, a trade-off should be set between benefits brought by facility location changes and costs incurred by possible modifications. This review reports on literature pointing out some aspects and characteristics of the dynamics of FLPs. In fact, this paper aims not only to review most variants of these problems, but also to provide a broad overview of their mathematical formulations as well as case studies that have been studied by the literature. Finally, based on classified research works and available gaps in the literature, some possible research trends will be pointed out. Crown Copyright (C) 2011 Published by Elsevier Ltd. All rights reserved.