Extended Hypercube Models for Location Problems with Stochastic Demand

Boyacı, Burak and Geroliminis, Nikolas (2013) Extended Hypercube Models for Location Problems with Stochastic Demand. In: hEART 2013 - 2nd Symposium of the European Association for Research in Transportation, 2013-09-04 - 2013-09-06, KTH Royal Institute of Technology.

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Abstract

In spatial queues, servers travel to the customers and provide service on the scene. This property makes them applicable to emergency response (e.g. ambulances, police) and on-demand transportation systems (e.g. paratransit, taxis) location problems. However, in spatial queues, there exist a different service rate for each customer-server pairs which creates Markovian models with enormous number of states and makes these approaches difficult to apply on even medium sized problems. Because of demand uncertainty, the nearest servers to a customer might not be available to intervene and this can significantly increase the service times. In this paper, we propose two new aggregate models and an approximate solution method with a dynamic programming heuristic. Results are compared with existing location models on hypothetical and real cases.