Inventory, transportation, service quality and the location of distribution centers

Nozick, Linda K.; Turnquist, Mark A.

doi:10.1016/s0377-2217(00)00234-4

Cited by 192 publications

(87 citation statements)

References 9 publications

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“…Joint location-inventory models have gained increased attention recently (see [22,23,24,26,30,31,32,37]). The problem analyzed by Shen et al [32] is closely related to our work.…”

Section: Literature Reviewmentioning

confidence: 99%

A facility location model with safety stock costs: analysis of the cost of single-sourcing requirements

2011

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We consider a supply chain setting where multiple uncapacitated facilities serve a set of customers with a single product. The majority of literature on such problems requires assigning all of any given customer's demand to a single facility. While this single-sourcing strategy is optimal under linear (or concave) cost structures, it will often be suboptimal under the nonlinear costs that arise in the presence of safety stock costs. Our primary goal is to characterize the incremental costs that result from a single-sourcing strategy. We propose a general model that uses a cardinality constraint on the number of supply facilities that may serve a customer. The result is a complex mixed-integer nonlinear programming problem. We provide a generalized Benders decomposition algorithm for the case in which a customer's demand may be split among an arbitrary number of supply facilities. The Benders subproblem takes the form of an uncapacitated, nonlinear transportation problem, a relevant and interesting problem in its own right. We provide analysis and insight on this subproblem, which allows us to devise a hybrid algorithm based on an outer approximation of this subproblem to accelerate the generalized Benders decomposition algorithm. We also provide computational results for the general model that permit characterizing the costs that arise from a single-sourcing strategy.

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“…Joint location-inventory models have gained increased attention recently (see [22,23,24,26,30,31,32,37]). The problem analyzed by Shen et al [32] is closely related to our work.…”

Section: Literature Reviewmentioning

confidence: 99%

A facility location model with safety stock costs: analysis of the cost of single-sourcing requirements

2011

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“…(8), (9), mean that the amount of product i to be transported among echelons is limited by transportation capacity.…”

Section: Constraintsmentioning

confidence: 99%

“…Production and distribution operations are the two most important operational functions in a SC. To achieve optimal operational performance in a SC, it is critical to integrate these two functions and plan them jointly in a coordinated way [ [1], [9]]. Different aspects of integrated problems for different parts of supply chain have been considered in the literatures.…”

Section: Introductionmentioning

confidence: 99%

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Designing a Genetic Algorithm to Solve an Integrated Model in Supply Chain Management Using Fuzzy Goal Programming Approach

Razmi

Jolai

2010

Balanced Automation Systems for Future Manufacturing Networks

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Abstract. Application of fuzzy goal programming and genetic algorithm is considered in this paper. We extend a multi-objective model for integrated inventory-production-distribution planning in supply chain (SC). We consider a supply chain network which consists of a manufacture, with multiple plants, multiple distribution centers (DCs), multiple retailers and multiple customers. The manufacturer produces several items. Decision maker's imprecise aspiration levels of goals are incorporated into model using fuzzy goal programming approach. Due to the complexity of problem in large size and in order to get a satisfactory near optimal solution with great speed, a new genetic algorithm is proposed to solve constrained problems. To show the efficiency of the used model and fuzzy goal programming approach and genetic algorithm for the collaborative inventory-production-distribution problem, computational experiments are performed on a hypothetically constructed case problem.

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“…All the works mentioned above aim to minimize the time at which the 85 truck and the drone complete the route and return to the depot, which can improve the quality of service [16]. However, in every logistics activities, operational costs also play an important role in the overall business cost (see [17] and [18]).…”

Section: Introductionmentioning

confidence: 99%

On the min-cost Traveling Salesman Problem with Drone

Ha¹,

Deville²,

Pham³

et al. 2018

Transportation Research Part C: Emerging Technologies

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Inventory, transportation, service quality and the location of distribution centers

Cited by 192 publications

References 9 publications

A facility location model with safety stock costs: analysis of the cost of single-sourcing requirements

A facility location model with safety stock costs: analysis of the cost of single-sourcing requirements

Designing a Genetic Algorithm to Solve an Integrated Model in Supply Chain Management Using Fuzzy Goal Programming Approach

On the min-cost Traveling Salesman Problem with Drone

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