A three-level supply chain network design model with risk-pooling and lead times
AbstractThis 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
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- Mehrdad Shahabi & Shirin Akbarinasaji & Avinash Unnikrishnan & Rachel James, 2013. "Integrated Inventory Control and Facility Location Decisions in a Multi-Echelon Supply Chain Network with Hubs," Networks and Spatial Economics, Springer, vol. 13(4), pages 497-514, December.
- Shu, Jia & Li, Zhengyi & Shen, Houcai & Wu, Ting & Zhong, Weijun, 2012. "A logistics network design model with vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 135(2), pages 754-761.
- Longinidis, Pantelis & Georgiadis, Michael C., 2014. "Integration of sale and leaseback in the optimal design of supply chain networks," Omega, Elsevier, vol. 47(C), pages 73-89.
- Tancrez, Jean-Sébastien & Lange, Jean-Charles & Semal, Pierre, 2012. "A location-inventory model for large three-level supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 485-502.
- Tsao, Yu-Chung & Lu, Jye-Chyi, 2012. "A supply chain network design considering transportation cost discounts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 401-414.
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