Distributionally robust facility location problem under decision-dependent stochastic demand

Beste Basciftci, Shabbir Ahmed, Siqian Shen

Abstract: Highlights•We study distributionally robust facility location with a moment, decision-dependent ambiguity set.•We examine the case when means and variances of demand are piecewise linear functions of location solutions.•We derive exact mixed-integer linear programming reformulation as well as valid inequalities.•We conduct numerical studies to compare with decision-independent stochastic and distributionally robust approaches.•Our results show remarkable improvements in profit and quality of service using our approach.