Analysis of Facility Systems’ Reliability Subject to Edge Failures: Based on the p-Median Problem

Abstract

We view a facility system as a kind of supply chain and model it as a connected graph in which the nodes represent suppliers, distribution centers or customers and the edges represent the paths of goods or information. The efficiency, and hence the reliability, of a facility system is to a large degree adversely affected by the edge failures in the network. In this paper, we consider facility systems' reliability analysis based on the classical p-median problem when subject to edge failures. We formulate two models based on deterministic case and stochastic case to measure the loss in efficiency due to edge failures and give computational results and reliability envelopes for a specific example.