The interaction of location and inventory in designing distribution systems

Erlebacher, Steven J.; Meller, Russell D.

doi:10.1080/07408170008963888

Cited by 133 publications

(66 citation statements)

References 15 publications

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“…The latter observation relies on previous works which showed how inventory control strategy effectively might alter the optimal supply chain network, suggesting the integration of inventory control strategies within standard facility location model to design supply chain networks (see, e.g. Berman et al 2012;Melo et al 2009;Daskin et al 2002;Erlebacher and Meller 2000;Miranda and Garrido 2004;Dotoli et al 2007;Yin and Khoo 2007).…”

Section: Conclusion and Further Researchmentioning

confidence: 99%

Current economic downturn and supply chain: the significance of demand and inventory smoothing

Cannella

Ashayeri

Miranda

et al. 2013

International Journal of Computer Integrated Manufacturing

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The aim of this article is to analyse and quantify the effects of demand and inventory smoothing into supply-chain performance, facing the extreme volatility and impetuous alteration of the market produced by the current economic recession. To do so, we model a traditional serial three-stage supply chain and we test five settings of order smoothing under two shocks in the market demand, and we measure effects in terms of internal process benefits and customer service level of all supply chain partners. Results show that the implementation of this inventory strategy should be based on reward schemes; in fact a higher level of smoothing can generally improve the performance of the upstream stages. On the contrary, this approach cannot be always beneficial for the retailer as the decrease in service level can outweigh the decrease in bullwhip.

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Section: Conclusion and Further Researchmentioning

confidence: 99%

Current economic downturn and supply chain: the significance of demand and inventory smoothing

Cannella

Ashayeri

Miranda

et al. 2013

International Journal of Computer Integrated Manufacturing

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“…Barahona and Jensen (1998) integrate an economic order quantity (EOQ) inventory model with a location model, formulated as a large-scale integer program, and solve its linear programming relaxation using Dantzig-Wolfe decomposition. Erlebacher and Meller (2000) study an analytical joint location-inventory model that considers the fixed costs of operating warehouses, inventory holding costs at the warehouses, and transportation costs, and develop heuristic procedures to solve it. Teo et al (2001) use an analytical modeling approach to study the impact on facility investments and inventory costs of consolidating warehouses; their model suggests that consolidation reduces costs when demands are independent and identically distributed or are independent and Poisson distributed.…”

Section: Literature Reviewmentioning

confidence: 99%

A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

Diabat¹,

Richard

Codrington³

2011

Ann Oper Res

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“…2.2 Stochastic supply chain network models Erlebacher and Meller (2000) proposed a stochastic multiobjective capitated p-median model to incorporate SCN and inventory. The NP-hard problem was solved by a selfdeveloped heuristic.…”

Section: Deterministic Scn Modelsmentioning

confidence: 99%

A case study on sample average approximation method for stochastic supply chain network design problem

Wang¹,

Shou²,

Lee³

et al. 2017

Front. Eng

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This study aims to solve a typical long-term strategic decision problem on supply chain network design with consideration to uncertain demands. Existing methods for these problems are either deterministic or limited in scale. We analyze the impact of uncertainty on demand based on actual large data from industrial companies. Deterministic equivalent model with nonanticipativity constraints, branch-and-fix coordination, sample average approximation (SAA) with Bayesian bootstrap, and Latin hypercube sampling were adopted to analyze stochastic demands. A computational study of supply chain network with front-ends in Europe and back-ends in Asia is presented to highlight the importance of stochastic factors in these problems and the efficiency of our proposed solution approach.

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The interaction of location and inventory in designing distribution systems

Cited by 133 publications

References 15 publications

Current economic downturn and supply chain: the significance of demand and inventory smoothing

Current economic downturn and supply chain: the significance of demand and inventory smoothing

A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

A case study on sample average approximation method for stochastic supply chain network design problem

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