An Approximation Algorithm for a Facility Location Problem with Inventories and Stochastic Demands.

In this article we propose, for any ε > 0, a 2(1 + ε)-approximation algorithm for a facility location problem with stochastic demands. At open facilities, inventory is kept such that arriving requests find a zero inventory with (at most) some pre-specified probability. The incurred costs are the expected transportation costs from the demand points to the facilities, the operating costs of the facilities and the investment in inventory. Keywords: approximation algorithms, stochastic facility location. AMS Classification: 68W25, 90B06, 60K30. [ABSTRACT FROM AUTHOR]