A three-level supply chain network design model with risk-pooling and lead times

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This paper considers a single-sourcing network design problem for a three-level supply chain consisting of suppliers, distribution centers (DC's) and retailers, where risk-pooling strategy and DC-to-supplier dependent lead times are considered. The objective is to determine the number and locations of suppliers and DC's, the assignment of each location-fixed DC to a supplier and that of each retailer to a DC, which minimizes the system-wide location, transportation, and inventory costs. The problem is formulated as a nonlinear integer programming model, for which a two-phase heuristic solution algorithm is derived based on the Lagrangian relaxation approach. Numerical experiments show that the proposed heuristic is effective and also efficient. (C) 2009 Elsevier Ltd. All rights reserved.
Publisher
PERGAMON-ELSEVIER SCIENCE LTD
Issue Date
2010-09
Language
English
Article Type
Article
Keywords

STOCHASTIC INVENTORY SYSTEMS; SAFETY STOCK CONSIDERATIONS; LOCATION NEWSBOY PROBLEM; DISTRIBUTION CENTERS; WAREHOUSE LOCATION; EXPECTED COSTS; TABU SEARCH; ALGORITHM; DEMAND; TRANSPORTATION

Citation

TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW, v.46, no.5, pp.563 - 581

ISSN
1366-5545
DOI
10.1016/j.tre.2009.12.004
URI
http://hdl.handle.net/10203/93410
Appears in Collection
IE-Journal Papers(저널논문)
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