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Integrated optimization of location, inventory and routing in supply chain network design

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  • Zheng, Xiaojin
  • Yin, Meixia
  • Zhang, Yanxia

Abstract

We study the integrated optimization of location, inventory and routing in supply chain network design (SCDN) problem. The SCND decision has significant impact on the performance of the supply chain. The major obstacles of the integrated optimization are the high non-linearity and the huge amount of variables and constraints caused by routing. In this paper, we introduce real-world constraints into the integrated model to characterize the model much more precisely, which simultaneously reduce the dimension of the problem. We propose an exact algorithm based on the Generalized Benders Decomposition (GBD) method to solve the model. We can obtain the Benders Cuts (BC) explicitly. We verify the effectiveness of the model and method by a real-life case: A passenger car supply chain network design case.

Suggested Citation

  • Zheng, Xiaojin & Yin, Meixia & Zhang, Yanxia, 2019. "Integrated optimization of location, inventory and routing in supply chain network design," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 1-20.
    • Handle: RePEc:eee:transb:v:121:y:2019:i:c:p:1-20
    DOI: 10.1016/j.trb.2019.01.003
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    4. Wang, Qingyi & Nie, Xiaofeng, 2023. "A location-inventory-routing model for distributing emergency supplies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    5. Mohamadreza Fazli-Khalaf & Bahman Naderi & Mohammad Mohammadi & Mir Saman Pishvaee, 2021. "The design of a resilient and sustainable maximal covering closed-loop supply chain network under hybrid uncertainties: a case study in tire industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 9949-9973, July.
    6. Vahdani, Behnam & Mohammadi, Mehrdad & Thevenin, Simon & Gendreau, Michel & Dolgui, Alexandre & Meyer, Patrick, 2023. "Fair-split distribution of multi-dose vaccines with prioritized age groups and dynamic demand: The case study of COVID-19," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1249-1272.
    7. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
    8. Tingting Ji & Shoufeng Ji & Yuanyuan Ji & Hongyu Liu, 2022. "Study on Sustainable Combined Location-Inventory-Routing Problem Based on Demand Forecasting," Sustainability, MDPI, vol. 14(23), pages 1-21, December.
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