Developing a multi-objective optimization model for locating backup facilities in multi-branch companies under spatial risks

Among implications for business configuration and location strategy of any emergency logistic plan the key question is the optimum balance between the risks of concentration and dispersion of backup facilities. That balance must determine how far these facilities should be located. If the crisis backup site is located too close to other company´s branches, it will be exposed to the same set of risks and location at greater distances will decrease the chances for business survival. In this paper, a new bi-objective model for locating backup facilities in multi branch companies considering spatial dispersion and concentration risks has been developed to cope with both concentration and dispersion risks by determining the optimum total risk value and the augmented ε-constraint method is used to deal with multi-objective.