IDEAS home Printed from https://ideas.repec.org/a/spr/joinma/v36y2025i6d10.1007_s10845-024-02421-3.html

A quantitative study of data aggregation for a network design problem: a case of automotive distribution

Author

Listed:
  • Suzanne Bihan

    (Université Grenoble Alpes, CNRS, Grenoble INP, G-SCOP)

  • Gülgün Alpan

    (Université Grenoble Alpes, CNRS, Grenoble INP, G-SCOP)

  • Bernard Penz

    (Université Grenoble Alpes, CNRS, Grenoble INP, G-SCOP)

Abstract

This paper presents a framework for a systematic analysis of the impact of data aggregation on a multi-product multi-period network design problem with batch cost. The optimization objective is to design the vehicle distribution network for an automotive manufacturer. Numerical experiments are conducted with real production data. Given the problem’s scale and complex constraints, data aggregation emerges as a natural strategy to help the convergence of resolution methods towards good solutions. We explore three aggregation dimensions: product type, spatial, and temporal, and for each of them, different levels. Addressing multiple aggregation dimensions is a novel approach that has not been extensively explored in current literature, especially within industrial settings. Our aggregation-disaggregation method reveals that data aggregation consistently leads to improved solutions within a constrained computation time, with temporal aggregation demonstrating the most significant reduction in problem size and solution improvement. Lastly, we give some managerial insights considering the industrial context.

Suggested Citation

  • Suzanne Bihan & Gülgün Alpan & Bernard Penz, 2025. "A quantitative study of data aggregation for a network design problem: a case of automotive distribution," Journal of Intelligent Manufacturing, Springer, vol. 36(6), pages 3941-3964, August.
    • Handle: RePEc:spr:joinma:v:36:y:2025:i:6:d:10.1007_s10845-024-02421-3
    DOI: 10.1007/s10845-024-02421-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10845-024-02421-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10845-024-02421-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Meisel, Frank & Kirschstein, Thomas & Bierwirth, Christian, 2013. "Integrated production and intermodal transportation planning in large scale production–distribution-networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 62-78.
    2. McCormack, Richard & Coates, Graham, 2015. "A simulation model to enable the optimization of ambulance fleet allocation and base station location for increased patient survival," European Journal of Operational Research, Elsevier, vol. 247(1), pages 294-309.
    3. Vanek, Francis M., 2001. "Analysis of the potential for spatial redistribution of freight using mathematical programming," European Journal of Operational Research, Elsevier, vol. 131(1), pages 62-77, May.
    4. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    5. Amiri-Aref, Mehdi & Klibi, Walid & Babai, M. Zied, 2018. "The multi-sourcing location inventory problem with stochastic demand," European Journal of Operational Research, Elsevier, vol. 266(1), pages 72-87.
    6. Ronald H. Ballou, 2001. "Unresolved Issues in Supply Chain Network Design," Information Systems Frontiers, Springer, vol. 3(4), pages 417-426, December.
    7. A. M. Geoffrion, 1977. "A priori error bounds for procurement commodity aggregation in logistics planning models," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 24(2), pages 201-212, June.
    8. Chandra Ade Irawan & Dylan Jones, 2019. "Formulation and solution of a two-stage capacitated facility location problem with multilevel capacities," Annals of Operations Research, Springer, vol. 272(1), pages 41-67, January.
    9. Kijmanawat, Kerati & Ieda, Hitoshi, 2005. "Development and Application of CM-GATS Algorithms in Solving Large Multilevel Hierarchical Network Design Problems," Research in Transportation Economics, Elsevier, vol. 13(1), pages 121-142, January.
    10. Paul Zipkin, 1982. "Transportation problems with aggregated destinations when demands are uncertain," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 29(2), pages 257-270, June.
    11. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    12. David F. Rogers & Robert D. Plante & Richard T. Wong & James R. Evans, 1991. "Aggregation and Disaggregation Techniques and Methodology in Optimization," Operations Research, INFORMS, vol. 39(4), pages 553-582, August.
    13. R. Francis & T. Lowe & M. Rayco & A. Tamir, 2009. "Aggregation error for location models: survey and analysis," Annals of Operations Research, Springer, vol. 167(1), pages 171-208, March.
    14. Klibi, Walid & Martel, Alain & Guitouni, Adel, 2016. "The impact of operations anticipations on the quality of stochastic location-allocation models," Omega, Elsevier, vol. 62(C), pages 19-33.
    15. Qi, Lian & Shen, Zuo-Jun Max, 2010. "Worst-case analysis of demand point aggregation for the Euclidean p-median problem," European Journal of Operational Research, Elsevier, vol. 202(2), pages 434-443, April.
    16. Klincewicz, J. G., 1991. "Heuristics for the p-hub location problem," European Journal of Operational Research, Elsevier, vol. 53(1), pages 25-37, July.
    17. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco & Verter, Vedat, 2012. "Multi-period reverse logistics network design," European Journal of Operational Research, Elsevier, vol. 220(1), pages 67-78.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenneth Carling & Mengjie Han & Johan Håkansson, 2012. "Does Euclidean distance work well when the p-median model is applied in rural areas?," Annals of Operations Research, Springer, vol. 201(1), pages 83-97, December.
    2. Chandra Irawan & Said Salhi, 2015. "Solving large $$p$$ p -median problems by a multistage hybrid approach using demand points aggregation and variable neighbourhood search," Journal of Global Optimization, Springer, vol. 63(3), pages 537-554, November.
    3. Alumura, Sibel A. & Karab, Bahar Y. & Melo, M. Teresa, 2013. "Location and logistics," Technical Reports on Logistics of the Saarland Business School 5, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    4. Richard Francis & Timothy Lowe, 2014. "Comparative error bound theory for three location models: continuous demand versus discrete demand," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(1), pages 144-169, April.
    5. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    6. Zhang, Qihuan & Wang, Ziteng & Huang, Min & Wang, Huihui & Wang, Xingwei & Fang, Shu-Cherng, 2025. "Collaborative supply chain network design under demand uncertainty: A robust optimization approach," International Journal of Production Economics, Elsevier, vol. 279(C).
    7. Irawan, Chandra Ade & Salhi, Said & Scaparra, Maria Paola, 2014. "An adaptive multiphase approach for large unconditional and conditional p-median problems," European Journal of Operational Research, Elsevier, vol. 237(2), pages 590-605.
    8. Jalil, M.N. & Zuidwijk, R.A. & Fleischmann, M. & van Nunen, J.A.E.E., 2009. "Spare Parts Logistics and Installed Base Information," ERIM Report Series Research in Management ERS-2009-002-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. M N Jalil & R A Zuidwijk & M Fleischmann & Jo A E E van Nunen, 2011. "Spare parts logistics and installed base information," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 442-457, March.
    10. Faugère, Louis & Klibi, Walid & White, Chelsea & Montreuil, Benoit, 2022. "Dynamic pooled capacity deployment for urban parcel logistics," European Journal of Operational Research, Elsevier, vol. 303(2), pages 650-667.
    11. Wang, Minke & Wu, Jiang & Kafa, Nadine & Klibi, Walid, 2020. "Carbon emission-compliance green location-inventory problem with demand and carbon price uncertainties," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    12. Marianov, Vladimir & Eiselt, H.A., 2024. "Fifty Years of Location Theory - A Selective Review," European Journal of Operational Research, Elsevier, vol. 318(3), pages 701-718.
    13. F. Tevhide Altekin & Ezgi Aylı & Güvenç Şahin, 2017. "After-sales services network design of a household appliances manufacturer," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 1056-1067, September.
    14. Marianov, Vladimir & Serra, Daniel & ReVelle, Charles, 1999. "Location of hubs in a competitive environment," European Journal of Operational Research, Elsevier, vol. 114(2), pages 363-371, April.
    15. Chandra Ade Irawan & Dylan Jones, 2019. "Formulation and solution of a two-stage capacitated facility location problem with multilevel capacities," Annals of Operations Research, Springer, vol. 272(1), pages 41-67, January.
    16. Richard Connors & David Watling, 2015. "Assessing the Demand Vulnerability of Equilibrium Traffic Networks via Network Aggregation," Networks and Spatial Economics, Springer, vol. 15(2), pages 367-395, June.
    17. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    18. Dhyani, Sneha & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2019. "Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand," IIMA Working Papers WP 2018-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    19. Sauvey, Christophe & Melo, Teresa & Correia, Isabel, 2019. "Two-phase heuristics for a multi-period capacitated facility location problem with service-differentiated customers," Technical Reports on Logistics of the Saarland Business School 16, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    20. Merrick, James H. & Weyant, John P., 2019. "On choosing the resolution of normative models," European Journal of Operational Research, Elsevier, vol. 279(2), pages 511-523.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joinma:v:36:y:2025:i:6:d:10.1007_s10845-024-02421-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.