Journal ArticleDOI
An inventory-location model: Formulation, solution algorithm and computational results
TLDR
A distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers that incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term is introduced.Abstract:
We introduce a distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers. In addition, the model incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term. The model is formulated as a non-linear integer-programming problem. Model properties are outlined. A Lagrangian relaxation solution algorithm is proposed. By exploiting the structure of the problem we can find a low-order polynomial algorithm for the non-linear integer programming problem that must be solved in solving the Lagrangian relaxation subproblems. A number of heuristics are outlined for finding good feasible solutions. In addition, we describe two variable forcing rules that prove to be very effective at forcing candidate sites into and out of the solution. The algorithms are tested on problems with 88 and 150 retailers. Computation times are consistently below one minute and compare favorably with those of an earlier proposed set partitioning approach for this model (Shen, 2000; Shen, Coullard and Daskin, 2000). Finally, we discuss the sensitivity of the results to changes in key parameters including the fixed cost of placing orders. Significant reductions in these costs might be expected from e-commerce technologies. The model suggests that as these costs decrease it is optimal to locate additional facilities.read more
Citations
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Journal ArticleDOI
Facility location and supply chain management - A review
TL;DR: Basic features that facility location models must capture to support decision-making involved in strategic supply chain planning are identified and applications ranging across various industries are presented.
Journal ArticleDOI
Facility Location Under Uncertainty: A Review
TL;DR: A review of the literature on stochastic and robust facility location models can be found in this article, where the authors illustrate both the rich variety of approaches for optimization under uncertainty and their application to facility location problems.
Journal ArticleDOI
Location-routing: Issues, models and methods
Gábor Nagy,Said Salhi +1 more
TL;DR: This paper proposes a classification scheme and looks at a number of problem variants in location-routing: a relatively new branch of locational analysis that takes into account vehicle routing aspects.
Journal ArticleDOI
The Design of Robust Value-Creating Supply Chain Networks: A Critical Review †
TL;DR: This paper argues for the assessment of SCN robustness as a necessary condition to ensure sustainable value creation and contributes to framing the foundations for a robust SCN design methodology.
Book
Production and Operations Management
Howard J. Weiss,Mark E. Gershon +1 more
TL;DR: A critical review of influential closed-loop supply chain research that takes a business economics perspective can be found in this article, where the authors offer a critical review and analysis of influential CLSC research.
References
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Journal ArticleDOI
Information distortion in a supply chain: the bullwhip effect
TL;DR: The authors analyzes four sources of the bullwhip effect: demand signal processing, rationing game, order batching, and price variations, and shows that the distortion tends to increase as one moves upstream.
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
Optimum Locations of Switching Centers and the Absolute Centers and Medians of a Graph
TL;DR: It is shown that the optimum location of a switching center is always at a vertex of the communication network while the best location for the police station is not necessarily at an intersection.