2018
DOI: 10.1016/j.tre.2018.02.006
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A simulation–optimization approach for a service-constrained multi-echelon distribution network

Abstract: Academic research on (s,S) inventory policies for multi-echelon distribution networks with deterministic lead times, backordering, and fill rate constraints is limited. Inspired by a real-life Dutch food retail case we develop a simulation-optimization approach to optimize (s,S) inventory policies in such a setting. We compare the performance of a Nested Bisection Search (NBS) and a novel Scatter Search (SS) metaheuristic using 1280 instances from literature and we derive managerial implications from a real-li… Show more

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Cited by 27 publications
(6 citation statements)
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“…The simulation-based optimization approach has also been widely used to solve the problems of congestion pricing (Chen et al, 2016;He et al, 2017), traffic signal control (Chong and Osorio, 2015;Osorio and Bierlaire, 2013;Nanduri, 2015a, 2015b), transit scheduling (Zhang and Xu, 2017), vehicle sharing (Cardin et al, 2017), supply chain management (Noordhoek et al, 2018), liner shipping (Dong and Song, 2009), etc. In general, there are three classes of methods for the simulation-based optimization, including the directsearch method, the stochastic gradient method, and the metamodel (or surrogate) method (Osorio and Bierlaire, 2013).…”
Section: Literature Reviewmentioning
confidence: 99%
“…The simulation-based optimization approach has also been widely used to solve the problems of congestion pricing (Chen et al, 2016;He et al, 2017), traffic signal control (Chong and Osorio, 2015;Osorio and Bierlaire, 2013;Nanduri, 2015a, 2015b), transit scheduling (Zhang and Xu, 2017), vehicle sharing (Cardin et al, 2017), supply chain management (Noordhoek et al, 2018), liner shipping (Dong and Song, 2009), etc. In general, there are three classes of methods for the simulation-based optimization, including the directsearch method, the stochastic gradient method, and the metamodel (or surrogate) method (Osorio and Bierlaire, 2013).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Thus, combining simulation and optimisation is an effective way to find a feasible optimal or nearly optimal solution. Such a strategy deploys the optimisation technique to identify the optimal variables and uses simulation to see the impact of random parameters on the model [37]. We solve each scenario several times by generating random parameters and computing the moving average of the variables.…”
Section: 𝜕𝜋 Dnmentioning
confidence: 99%
“…e agent-based model can be combined with optimization techniques in two ways: (1) embedding an optimizing method into the physical behavior of agents (e.g., by translating optimization algorithms like route-search into agents' behavior) [86]; (2) utilizing the agent-based model in a simulation-based optimization framework to obtain the simulation results, which are designed as an intermediate component to provide input data iteratively [87].…”
Section: Integrating Agent-based Approaches In Optimizationmentioning
confidence: 99%