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Dynamic planning design of three level distribution network with horizontal and vertical exchange

Author

Listed:
  • Abdennour Ilyas Benfriha
  • Lamia Triqui-Sari
  • Aimade Eddine Bougloula
  • Mohammed Bennekrouf

Abstract

Inventory management in distribution networks remains a challenging task due to the demand nature and the limited storage capacity. In this work, we study a three-level, a multi-product and a multi-period distribution network consisting of a central warehouse, three distribution centres and six wholesalers. Each of them faces a random demand. In order to optimise the inventory management in the distribution network, we first propose to make a horizontal cooperation between actors of the same level in the form of product exchange; then we propose a second approach based on vertical-horizontal cooperation. Both approaches are modelled as a MIP model and solved using the CPLEX solver. The objective of this study is to analyse the performance in terms of costs, quantities in stock and customer satisfaction.

Suggested Citation

  • Abdennour Ilyas Benfriha & Lamia Triqui-Sari & Aimade Eddine Bougloula & Mohammed Bennekrouf, 2024. "Dynamic planning design of three level distribution network with horizontal and vertical exchange," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 47(3), pages 295-326.
    • Handle: RePEc:ids:ijlsma:v:47:y:2024:i:3:p:295-326
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