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Design and analysis of a satellite network with direct delivery in the pharmaceutical industry

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  • Zhu, Stuart X.
  • Ursavas, Evrim

Abstract

Creating and maintaining an efficient distribution network is essential for companies in the modern pharmaceutical industry. Medicine delivery usually takes place via depots and/or satellites, and the proposed model for assessing the issue determines the facility and routing decisions simultaneously. We develop a technique that iterates between an upper bound and a lower bound, based on a blended Lagrangian relaxation branch-and-cut approach where we exploit separability and linearity. We conducted computational experiments on real-life instances from the Dutch pharmaceutical industry distribution network. We show that the solution method can provide solutions for real-life cases within reasonable time windows.

Suggested Citation

  • Zhu, Stuart X. & Ursavas, Evrim, 2018. "Design and analysis of a satellite network with direct delivery in the pharmaceutical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 190-207.
    • Handle: RePEc:eee:transe:v:116:y:2018:i:c:p:190-207
    DOI: 10.1016/j.tre.2018.06.005
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    2. Chen, Wanying (Amanda) & De Koster, René B.M. & Gong, Yeming, 2021. "Performance evaluation of automated medicine delivery systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    3. Dastgoshade, Sohaib & Shafiee, Mohammad & Klibi, Walid & Shishebori, Davood, 2022. "Social equity-based distribution networks design for the COVID-19 vaccine," International Journal of Production Economics, Elsevier, vol. 250(C).
    4. Kramer, Raphael & Cordeau, Jean-François & Iori, Manuel, 2019. "Rich vehicle routing with auxiliary depots and anticipated deliveries: An application to pharmaceutical distribution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 162-174.

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