D. Ruiz-Hernández, N. Gulpinar
In a constantly changing economic environment, globalized firms face the need to incur important managerial changes in order to maintain their profits or to restore loss profitability. Among these changes, facility restructuring has become widely accepted as a valuable mechanism for reducing costs, recovering competitive advantage and, in general, dealing with an unfavorable business environment. In this paper we address the capacitated facility delocation problem under demand uncertainty. The problem is formulated as a multistage stochastic programming problem where the decision maker should decide either to close certain facilities and/or to modify the capacity of others in order to deal with a decreasing demand. Some computational experiments, aimed at illustrating the performance of the model, are presented.
Keywords: Capacitated facilities, stochastic programming, uncertainty
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WA2 Logistics and planning
June 1, 2016 9:00 AM
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