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An improved Lagrangian relaxation-based heuristic for a joint location-inventory problem

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A Lagrangian relaxation-based heuristic that is capable of efficiently solving large-size instances of the multi-echelon joint inventory-location (MJIL) problem and yields optimal or near-optimal solutions.
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This article is published in Computers & Operations Research.The article was published on 2015-09-01 and is currently open access. It has received 91 citations till now. The article focuses on the topics: Lagrangian relaxation & Heuristic.

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Citations
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A genetic algorithm approach for location-inventory-routing problem with perishable products

TL;DR: In this paper, a location-inventory-routing model for perishable products is proposed to determine the number and location of required warehouses, the inventory level at each retailer, and the routes traveled by each vehicle.
Journal ArticleDOI

Supply chain design for efficient and effective blood supply in disasters

TL;DR: In this paper, a stochastic bi-objective supply chain design model for the efficient (cost minimizing) and effective (delivery time minimizing) supply of blood in disasters is presented.
Journal ArticleDOI

Toward an integrated sustainable-resilient supply chain: A pharmaceutical case study

TL;DR: In this article, a multi-objective integrated sustainable-resilient mixed integer linear programming model for designing a pharmaceutical supply chain network under uncertainty is presented, and a new fuzzy possibilistic-stochastic programming approach is developed.
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Designing a supply chain resilient to major disruptions and supply/demand interruptions

TL;DR: In this paper, a hybrid robust-stochastic optimization model and a Lagrangian relaxation solution method for designing a supply chain resilient to supply/demand interruptions and facility disruptions whose risk of occurrence and magnitude of impact can be mitigated through fortification investments is presented.
Journal ArticleDOI

A reverse logistics network design

TL;DR: In this article, a mixed-integer linear program (MILP) is proposed to address the complex network configuration of an RL system, which decides on the optimal selection of sites, the capacities of inspection centers and remanufacturing facilities.
References
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Book

Supply Chain Management: Strategy, Planning and Operations

Sunil Chopra, +1 more
TL;DR: In this paper, the authors present a framework to analyze the supply chain performance and predict demand and supply in an e-commerce e-business environment, and discuss the role of cross-functional drivers in the process.
Book

Designing and managing the supply chain : concepts, strategies, and case studies

TL;DR: This research presents a meta-modelling architecture for supply chain management that automates and automates the very labor-intensive and therefore time-heavy and expensive process of planning and executing supply contracts.
Journal ArticleDOI

The Lagrangian Relaxation Method for Solving Integer Programming Problems

TL;DR: This paper is a review of Lagrangian relaxation based on what has been learned in the last decade and has led to dramatically improved algorithms for a number of important problems in the areas of routing, location, scheduling, assignment and set covering.
Journal ArticleDOI

A framework for supply chain performance measurement

TL;DR: In this article, the authors developed a framework to promote a better understanding of the importance of SCM performance measurement and metrics, using the current literature and the results of an empirical study of selected British companies.
Related Papers (5)
Frequently Asked Questions (13)
Q1. What are the contributions mentioned in the paper "An improved lagrangian relaxation-based heuristic for a joint location-inventory problem" ?

The authors consider a multi-echelon joint inventory-location ( MJIL ) problem that makes location, order assignment, and inventory decisions simultaneously. In this paper, the authors present a Lagrangian relaxation-based heuristic that is capable of efficiently solving large-size instances of the problem. A computational study demonstrates that their heuristic solution procedure is efficient and yields optimal or near-optimal solutions. 

The following are some recommendations for future work and research directions for enhancing the model: ( 1 ) The model can be naturally extended to consider multiple products. ( 2 ) the authors have assumed that there is no capacity restriction on the amount of product that can be stored or processed by a facility. The authors can replace the uncapacitated fixed charge location problem by the capacitated fixed charge location problem and then integrate this with the proposed inventory model. ( 3 ) the authors can relax the single-sourcing restriction to allow a single retailer to be supplied by more than one distribution center. 

The existence of the location-type decision variables, in addition to the inventory decision variables, is the only reason for calling such problems location-inventory problems. 

The structure of the model considered in this paper is such that new constraints or cost components can be added easily to the model. 

Inventory management and facility location are two major issues in the efficient design of a supply chain network; see Gunasekaran et al. [16,17] and Stevens [34]. 

the expiration of the blood platelets a few days after they are collected is another important factor to be considered. 

Due to the success that Lagrangian relaxation has exhibited in tackling several NP-hard supply chain combinatorial optimization problems, the authors chose to address the MJIL with a Lagrangian relaxation-based heuristic. 

when the Lagrangian procedure terminates, the best known lower bound is equal to the best known upper bound (within some pre-specified tolerance), the authors have found the optimal solution to the MJIL problem. 

The reason why Δgði; jÞ is recalculated for tuples ði; j;Δgði; jÞÞ with j¼ jmin in Step 3 is that the objective function (10) depends on all entries in the jth column of Y via the term βinvZ nj ðY ;jÞ, and hence when an entry in this column changes, all tuples that would add a “1” to this column must be recalculated. 

The authors tested their heuristic for the MJIL problem on a total 1750 randomly generated instances against the Lagrangian relaxation based algorithm used by Diabat et al. [10]. 

Each hospital stored its own platelet inventory and this independent inventory and location policy led to platelets going to waste after expiration in certain hospitals, while others ran out very soon. 

Çetinkaya et al. [4] further consider that transportation costs are subject to truck and cargo capacity, leading to a need for explicit cargo cost modelling. 

The reason that tuples ði; j;Δgði; jÞÞ with i¼ imin are removed in Step 3 is that once Yimin ;jmin has been set to one, the authors already have one “1” in row imin, so the authors remove any tuples that would place another “1” in this row.(ii)