A Risk Management Model For The Capacitated Continuous Location Allocation Problem

Abstract

This paper proposes a risk management model for the facility location problems in fuzzy environment. We investigate the capacitated continuous location allocation problem in continuous space as a risk model. Two risk types are considered in the proposed model: customer risk and financial risk. The risks are caused because of unsatisfied demands and budget constraint, respectively. The introduced model is extension of the continuous location allocation model by adding fixed cost and customer risk concept. A facility belongs to a zone when is located in a predetermined radius from center of the zone. Because of uncertain budget and demand, the model is considered in fuzzy environment. Finally, a risk management model is proposed with presentation of degree satisfaction concept of each risk as objective function. Also, a numerical example is expressed to illustrate the proposed model.