Enhancing Facility Reliability with Backup Options and Budget Constraint

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DOI:

https://doi.org/10.7166/37-1-3266

Abstract

This study considers facility failures in supply chain networks in which facilities must be located at candidate sites to serve customers. To enhance reliability, we incorporate backup options and a limited fortification budget. Customers assigned to fortified facilities do not require backup, while those assigned to unfortified ones do. The problem is formulated as a linear integer model and solved using Lagrangian relaxation. The relaxed model yields a variant of the binary knapsack problem, addressed through a novel solution method. The proposed approach achieves an average optimality gap of 0.1% with a computational time of 20 seconds.

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Published

2026-05-22

How to Cite

Alenezi, A. (2026). Enhancing Facility Reliability with Backup Options and Budget Constraint. The South African Journal of Industrial Engineering, 37(1), 57–72. https://doi.org/10.7166/37-1-3266