A location-inventory model for large three-level supply chains
(2012) Transportation Research. Part E: Logistics and Transportation Review — Vol. 48, n° 2, p. 485-502 (2012)
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- Authors
- Abstract
- We study the location-inventory problem in three-level supply networks. Our model integrates three decisions: the distribution centers location, flows allocation, and shipment sizes. We propose a nonlinear continuous formulation, including transportation, fixed, handling and holding costs, which decomposes into a closed-form equation and a linear program when the DC flows are fixed. We thus develop an iterative heuristic that estimates the DC flows a priori, solves the linear program, and then improves the DC flow estimations. Extensive numerical experiments show that the approach can design large supply networks both effectively and efficiently, and a case study is discussed.
- Affiliations
Louvain School of Management Operations and Information FUCaM Sciences de gestion
Citations
Tancrez, J.-S., Lange, J.-C., & Semal, P. (2012). A location-inventory model for large three-level supply chains. Transportation Research. Part E: Logistics and Transportation Review, 48(2), 485-502. https://doi.org/10.1016/j.tre.2011.10.005 (Original work published 2012)