Capacity acquisition and stochastic customer demand assignment in a network of facilities
Conference Paper
Overview
Overview
abstract
We study a class of capacity acquisition and assignment problems with stochastic demands often found in operations planning contexts. In this setting, a supplier utilizes a set of distinct facilities to satisfy the demands of different customers or markets. Our model simultaneously assigns customers to each facility and determines the best capacity level at each facility. This results in a new class of stochastic assignment and capacity planning problems, for which we propose a branch-and-price solution approach.