Reliable warehouse location-network design problem under intentional disruption Mohammad Reza Hamidi, Mohammad Reza Gholamian ⇑ , Kamran Shahanaghi, Arash Yavari School of Industrial Engineering, Iran University of Science and Technology (IUST), Tehran, Iran article info Article history: Received 14 December 2015 Received in revised form 5 July 2017 Accepted 11 September 2017 Available online 13 September 2017 Keywords: Warehouse location Reliability Intentional disruption Network design abstract Warehouses play a significant role in all logistics networks. Any restriction in accessing warehouses leads to harmful influences in the network operations. Therefore, it is necessary to consider reliability for ware- house networks. In recent decades, researchers have developed different methods for reliable location of facilities against disruptions. Some disruptions may happen intentionally. Networks with valuable flows like cash transporting systems or military networks are at the risk of intentional disruption. All previous methods lead to the networks that carried out operations to protect the network after disruption. No sig- nificant effort has been done to prevent damage to network before disruption. In this paper, we have pro- posed a new concept called ‘‘prevention reliability” which prevents the network from intentional disruption and increases reliability before any attack. In other words, prevention reliability prevents dis- ruption by inserting optimum number of fake items beside real items in the network to make a compli- cated environment for hostile. In this way, distinguishing real items would be more complicated, and so make more prevention for real items. In this paper, the reliable warehouse location problem is modeled by this concept and solutions are demonstrated by four data sets: a small data set is used to verify the model and two larger examples are used to check the efficiency of the model. Finally, a real world case study in the field of Tehran relief warehouses is investigated. A comparative analysis is also presented to illustrate the efficiency of proposed concept. Ó 2017 Elsevier Ltd. All rights reserved. 1. Introduction Facility location is a classical problem in operations research. It is considered to select appropriate construction for facility location to minimize the total cost of initial location and final transportation, or maximize covering the demand. Modern distribution networks are complex engineered systems due to their size, span, the nature of customer assignment, and the network flow. Among different facilities and networks, it is possible that for any reason, such as bad weather condition, worker strikes, sabo- tages etc., one or more facilities get broken or stop servicing. In such situations, system cannot operate properly. This may cause more operation cost because of longer paths or more transporta- tion. To avoid this, reliable models are designed. In the literature, different reliable models are developed but the models can be classified into three categories as follows.  Using Redundant Facilities: This concept of reliability is inspired from network reliability theory which is concerned with com- puting, estimating, or maximizing the probability that a net- work remains connected in the face of random failures (Snyder & Daskin, 2005). In such reliable models, facility failures occur based on a failure rate. To avoid system stop, redundant facilities are established and start serving when disruption hap- pens for a related facility  Increasing Survivability: Survivability is a network’s ability to perform its designated set of functions given. Network infras- tructure component failures, resulting in a service outage, which can be described by the number of services affected, the number of subscribers affected, and the duration of the out- age (Snow, Varshney, & Malloy, 2000).  Fortifying Facilities and Networks: The aim of this concept is to harden or fortify network components within a limited budget to protect the network components. Fortifying a facility makes the facility hard to interdict or decreases the probability of being successfully interdicted (Church & Scaparra, 2007; Liberatore, Scaparra, & Daskin, 2011). http://dx.doi.org/10.1016/j.cie.2017.09.012 0360-8352/Ó 2017 Elsevier Ltd. All rights reserved. ⇑ Corresponding author. E-mail address: Gholamian@iust.ac.ir (M.R. Gholamian). Computers & Industrial Engineering 113 (2017) 123–134 Contents lists available at ScienceDirect Computers & Industrial Engineering journal homepage: www.elsevier.com/locate/caie