A solution for stochastic location-allocation problem

The location-allocation(LA) problem is to locate a set of sources(facilities) to serve or supply a set of destinations(customers) in an optimum fashion. The stochastic model of LA problem is presented to deal with uncertain demand. We employed Monte Carlo Sampling to calculate the uncertain demand function in the stochastic model. Genetic algorithm(GA) was utilized to deter-mine the number of the sources, the destinations allocated into suitable sources, and the amount of products transport from sources to destinations. Chromosome structure and Operators of GA were discussed. The optimizations results show that the solution is reliable.