A reliable location model for heterogeneous systems under partial capacity losses

Abstract

Due to the interdependency between multiple infrastructure systems, the performance of a facility may depend on the resources or supplies received from other facilities. However, cross-system interdependence has seldom been studied in the location design context, probably due to the lack of a concise model describing interdependence across heterogeneous systems. This paper proposes a new heterogeneous flow scheme to describe cross-system interdependence. This scheme has two features distinguished from existing models in describing an interdependent facility location problem. First, it is a simple linear model upon which a compact facility location model can be built. Secondly, it relaxes the need to maintain flow conservation between different systems and is suitable in describing heterogeneous systems that take in and output different resources or services. Built on this scheme, this paper proposes a reliable location design model for a nexus of interdependent infrastructure systems. This model aims to locate the optimal facility locations in multiple heterogeneous systems to balance the tradeoff between the facility investment and the expected nexus operation performance. Different from other reliable facility location models, this expected performance captures interdependence among heterogeneous systems due to the resource input-output relationships. The consideration of continuous partial capacity losses complements the reliable location literature that mainly focuses on binary disruptions. Two numerical examples are conducted for investigating features and applications of the proposed model. The results indicate that with a standard off-the-shelf integer programming solver, the proposed model is able to solve optimal facility location design for problem instances of realistic scales to the near-optimum solutions with optimality gap assurance. Sensitivity analyses of key parameters indicate that improving facility capacity and reducing interdependency between systems can mitigate impacts of facility capacity losses and reduce the overall system cost.