General asymptotic and submodular results for the Median Problem with Unreliable Facilities

Abstract

The Median Problem with Unreliable Facilities (MPUF) consists of locating facilities such that the expected cost of serving the customers, considering possibility of failure, is minimized. We consider a general version of MPUF where facility disruptions may have non-zero correlation while the current approaches assume independence. We express the problem as a two-stage stochastic program and show that, independently of correlation values, some previous asymptotic and submodular results remain valid.