Joint optimization of supplier selection and facility location for 2022 Winter Olympics in the presence of supply risk

Vegetable supply is very important for the Winter Olympics, but there exist potential risks resulting frmo bad weather, road congestion and other factors. In this paper, we study the joint decision problem on vegetable supplier selection and facility location for 2022 Winter Olympics held in Beijing considering supply risk. We model this problem as a two-stage stochastic mixed-integer programming. Then we collect extensively data regarding to the game and estimate the parameters, based on which we conduct extensive numerical experiments. We find that the overall supply risk is related to the correlation of the suppliers' disruption risks, and a high-risk supplier may be selected under some cases. For the 2022 Winter Olympics, we should select multiple centres.