Take Action

Home | Faculty & Research Overview | Research

Research Details

A Facility Reliability Problem: Formulation, Properties, and Algorithm, Naval Research Logistics Quarterly


Having a robustly designed supply chain network is one of the most effective ways to hedge against network disruptions because contingency plans in the event of a disruption are often significantly limited. In this article, we study the facility reliability problem: how to design a reliable supply chain network in the presence of random facility disruptions with the option of hardening selected facilities.We consider a facility location problem incorporating two types of facilities, one that is unreliable and another that is reliable (which is not subject to disruption, but is more expensive).We formulate this as a mixed integer programming model and develop a Lagrangian Relaxation-based solution algorithm. We derive structural properties of the problem and show that for some values of the disruption probability, the problem reduces to the classical uncapacitated fixed charge location problem. In addition, we show that the proposed solution algorithm is not only capable of solving large-scale problems, but is also computationally effective.




Michael Lim, Mark S Daskin, Achal Bassamboo, Sunil Chopra

Date Published



Lim, Michael, Mark S Daskin, Achal Bassamboo, and Sunil Chopra. 2010. A Facility Reliability Problem: Formulation, Properties, and Algorithm. Naval Research Logistics Quarterly .(1): 58-70.


Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more


Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.


Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more