This research provides funding for the development of a new class of facility location models that account for integrated location, inventory and vehicle routing decisions with an emphasis on facilities used to process perishable commodities. The models will explicitly recognize the uncertainty inherent in future demands and costs as well as the multi-objective nature of facility location decisions. In the face of uncertainty, long-term siting decisions must be made. Shorter-term inventory and routing decisions can be modified over time in response to changing conditions. The models will recognize the different time scales of the various decision contexts. New methods of approximating the interactions of inventory and routing costs on location decisions will be developed. Much of the work will be done in a scenario-planning context to enable decision-makers to explore a variety of future conditions. The models will also allow planners to explore a variety of objectives that typically affect facility location decisions including: cost minimization, service maximization and equity. The research will lead to improvements in our ability to account for uncertainty and multiple objectives in facility location planning. In particular, new formulations of facility location models that better account for inventory management and vehicle routing without the need to explicitly model these tactical and operational problems in detail will be developed. New methods of solving the mathematical models will also be developed. This work will lead to an improved understanding of the impacts of the interaction of demand uncertainty, inventory management and vehicle routing on facility location decisions. The models will be applicable in a variety of public and private sector facility siting contexts including: newspaper printing plants, agricultural and food processing facilities, and blood banks. The models will, if successful, lead to reduced costs and improved customer service in these and related industries.
