Seminer: “A Profit-Maximization Location-Capacity Model for Designing a Service System with Risk of Service Interruptions,” Dr. Pooya Hoseinpour (McGill University), Ümit Berkman Seminer Salonu, 13:40 13 Nisan (EN)

Date: 13 April, 2018 Friday
Time: 13:40-14:40
Place: Faculty of Business Administration,
Umit Berkman Seminar Room

“A profit-maximization location-capacity model for designing a service system with risk of service interruptions”
Pooya Hoseinpour
Ph.D. in Industrial Engineering & Management Systems
McGill University

This paper considers the design of an immobile service system in which each facility’s service process is subject to the risk of interruptions. The location-capacity decisions and allocations are simultaneously made to maximize the difference between the service provider’s profit and the sum of customers’ transportation and waiting costs. An efficient Lagrangian-based solution algorithm is developed, which solves large-sized instances with up to 50 service facilities and 500 customers in a few seconds. Several sensitivity analyses and managerial insights are presented. The model is also applied to a case study on a logistics network design problem in the zinc mining industry.