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Location-inventory problem in supply chains: a modelling review

Author

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  • Reza Zanjirani Farahani
  • Hannaneh Rashidi Bajgan
  • Behnam Fahimnia
  • Mohamadreza Kaviani

Abstract

A location-inventory problem (LIP) aims to integrate strategic supply chain design decisions with tactical and operational inventory management decisions. This study provides an extensive review of the existing literature of LIP modelling. A mathematical model is presented for a basic LIP, which can be further developed to incorporate additional features for use in real-world scenarios. We also discuss the evolution of LIP modelling literature over the past three decades and provide summary tables outlining characteristics of the published works including key modelling attributes and objective function cost components. Additional classifications are completed based on the solution methods adopted and real-world applications investigated. Our observations provide important insights and identify potential directions for future research in the field.

Suggested Citation

  • Reza Zanjirani Farahani & Hannaneh Rashidi Bajgan & Behnam Fahimnia & Mohamadreza Kaviani, 2015. "Location-inventory problem in supply chains: a modelling review," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3769-3788, June.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:12:p:3769-3788
    DOI: 10.1080/00207543.2014.988889
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