Abstract
Facility location problem is a branch of operational research and computational geometry. It involves the best allocation of facilities to minimize transportation costs, while considering factors such as avoiding placing dangerous materials near the premises and the facilities of competitors. According to B2C e-commerce unique customer characteristics and fierce market competition, two facility location models in e-commerce under uncertainty are proposed, i.e., expected value model and pessimistic value model. It is proved these models can be converted into equivalent models based on inverse uncertainty distribution method. A hybrid algorithm is proposed to solve these models. Some numerical experiments are used to demonstrate the effectiveness of the proposed models and approach.
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