Multiobjective Location Problems with Variable Domination Structures and an Application to Select a New Hub Airport

Abstract

Background: Nowadays, variable domination structure is instrumental in studying multiobjective decision making problems. We investigate multiobjective location problems with respect to variable domination structure and its applications in supply chain management. Methods: We formulate practical problems in supply chain management as an optimization problem with a variable domination structure. Moreover, we present the mathematical methods to solve such problems. We investigate two kinds of solutions derived from the concept of minimal and nondominated solutions from vector optimization problems with respect to variable domination structure. Furthermore, we explore how these solution concepts are characterized in practical problems. Results: We ex- pose how those solutions are beneficial in practical problems. However, these results hold true for multiobjective decision making problems with a continuous feasible set; we present a practical problem in the case of a finite set of feasible locations. Conclusions: In many multiobjective location problems, each location’s characterizations, preferences, and restrictions are involved in the decision making process. This study investigates the decision making problems, where different preferences of objective functions at each location are assumed. Moreover, we present a numerical experiment for selecting a new hub airport.