The Stochastic Uncapacitated Facility Location Problem: A New Formulation and Extensions to the Capacitated Problem

Abstract This note presents an alternative formulation of the deterministic location model which Tcha and Yoon have recently developed to approximate the stochastic uncapacitated facility location problem. The model, besides being more compact and easier to handle than their model, has the distinct advantage of having a tighter LP relaxation. Also suggested is how the new formulation can be implemented in Van Roy's Cross Decomposition method for solving a more general stochastic capacitated problem.