An approximation algorithm for a facility location problem with stochastic demands and inventories

We propose a 2-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. Costs incurred are expected transportation costs, facility operating costs and inventory costs. (c) 2005 Elsevier B.V. All rights reserved.