A New Model for Stochastic Facility Location

We study a strategic facility location problem under uncertainty. The uncertainty associated with future events is modeled by defining alternative future scenarios with probabilities. We present a new model that minimizes the a-reliable meanExcess regret (expected worst-case regret) with a pre-specified confidence level. We demonstrate the effectiveness of this new approach by comparing it to the “a-reliable p-minimax regret" model and by presenting computation results for large-scale problems.