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| Title: | Incorporating inventory and routing costs in strategic location models |
| Author (s): | Shen, Zuo-Jun Max Qi, Lian |
| Department/Lab Affiliations: | Business & Information Technology Information Science & Technology |
| Keywords: | Location Models Models Vehicle supply chain |
| Issue Date: | 2007-06-01 |
| Publisher: | Elsevier |
| Citation: | Qi, Lian., and Shen, Zuo-Jun Max. "Incorporating Inventory and Routing Costs in Strategic Location Models." European Journal of Operational Research, (2007). |
| Abstract: | We consider a supply chain design problem where the decision maker needs to decide the number and previous termlocationsnext term of the distribution centers (DCs). Customers face random demand, and each DC maintains a certain amount of safety stock in order to achieve a certain service level for the customers it serves. The objective is to minimize the total previous termcostnext term that includes previous termlocation costs and inventory costsnext term at the DCs, and distribution previous termcostsnext term in the supply chain. We show that this problem can be formulated as a nonlinear integer programming previous termmodel,next term for which we propose a Lagrangian relaxation based solution algorithm. By exploring the structure of the problem, we find a low-order polynomial algorithm for the nonlinear integer programming problem that must be solved in solving the Lagrangian relaxation sub-problems. We present computational results for several instances of the problem with sizes ranging from 40 to 320 customers. Our results show the benefits of having an integrated supply chain design framework that includes previous termlocation, inventory, and routingnext term decisions in the same optimization previous termmodel. |
| Type: | Article - Journal text |
| In Title: | European Journal of Operational Research |
| Copyright Notice: | This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder. FULL COPYRIGHT INFORMATION: |
| Publisher URL: | |
| Link to this page: |
| title | Incorporating inventory and routing costs in strategic location models |
| contributor.author | Shen, Zuo-Jun Max |
| contributor.author | Qi, Lian |
| contributor.deptlab | Business & Information Technology |
| contributor.deptlab | Information Science & Technology |
| contributor.sponsor | National Science Foundation |
| subject | Location Models |
| subject | Models |
| subject | Vehicle |
| subject | supply chain |
| date.issued | 2007-06-01 |
| publisher | Elsevier |
| identifier.citation | Qi, Lian., and Shen, Zuo-Jun Max. "Incorporating Inventory and Routing Costs in Strategic Location Models." European Journal of Operational Research, (2007). |
| identifier.pub.URI | |
| description.abstract | We consider a supply chain design problem where the decision maker needs to decide the number and previous termlocationsnext term of the distribution centers (DCs). Customers face random demand, and each DC maintains a certain amount of safety stock in order to achieve a certain service level for the customers it serves. The objective is to minimize the total previous termcostnext term that includes previous termlocation costs and inventory costsnext term at the DCs, and distribution previous termcostsnext term in the supply chain. We show that this problem can be formulated as a nonlinear integer programming previous termmodel,next term for which we propose a Lagrangian relaxation based solution algorithm. By exploring the structure of the problem, we find a low-order polynomial algorithm for the nonlinear integer programming problem that must be solved in solving the Lagrangian relaxation sub-problems. We present computational results for several instances of the problem with sizes ranging from 40 to 320 customers. Our results show the benefits of having an integrated supply chain design framework that includes previous termlocation, inventory, and routingnext term decisions in the same optimization previous termmodel. |
| type | Article - Journal |
| type.DCMIType | text |
| type.status | Final version |
| rights | This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder. |
| rights.URI | |
| relation.isPartOf | European Journal of Operational Research |
| date.accessioned | 2008-03-28T17:21:46Z |
| date.available | 2008-03-28T17:21:49Z |
| identifier.persist.URI |