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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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    Cited by:

    1. Ren, Shuyun & Choi, Tsan-Ming & Lee, Ka-Man & Lin, Lei, 2020. "Intelligent service capacity allocation for cross-border-E-commerce related third-party-forwarding logistics operations: A deep learning approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    2. Shang, Xiaoting & Zhang, Guoqing & Jia, Bin & Almanaseer, Mohammed, 2022. "The healthcare supply location-inventory-routing problem: A robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    3. Pourya Pourhejazy & Oh Kyoung Kwon, 2016. "The New Generation of Operations Research Methods in Supply Chain Optimization: A Review," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    4. Aaron Guerrero Campanur & Elias Olivares-Benitez & Pablo A. Miranda & Rodolfo Eleazar Perez-Loaiza & Jose Humberto Ablanedo-Rosas, 2018. "Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands," Complexity, Hindawi, vol. 2018, pages 1-16, November.
    5. Sinha, Ankur & Das, Arka & Anand, Guneshwar & Jayaswal, Sachin, 2023. "A general purpose exact solution method for mixed integer concave minimization problems," European Journal of Operational Research, Elsevier, vol. 309(3), pages 977-992.
    6. Zheng, Xiaojin & Yin, Meixia & Zhang, Yanxia, 2019. "Integrated optimization of location, inventory and routing in supply chain network design," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 1-20.
    7. Hao Guo & Congdong Li & Ying Zhang & Chunnan Zhang & Mengmeng Lu, 2018. "A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    8. Hacardiaux, Thomas & Defryn, Christof & Tancrez, Jean-Sébastien & Verdonck, Lotte, 2020. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
    9. Darmawan, Agus & Wong, Hartanto & Thorstenson, Anders, 2021. "Supply chain network design with coordinated inventory control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    10. Schuster Puga, Matías & Minner, Stefan & Tancrez, Jean-Sébastien, 2019. "Two-stage supply chain design with safety stock placement decisions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 183-193.
    11. Congdong Li & Hao Guo & Ying Zhang & Shuai Deng & Yu Wang, 2018. "An Improved Differential Evolution Algorithm for a Multicommodity Location-Inventory Problem with False Failure Returns," Complexity, Hindawi, vol. 2018, pages 1-13, October.
    12. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
    13. Holzapfel, Andreas & Kuhn, Heinrich & Sternbeck, Michael G., 2018. "Product allocation to different types of distribution center in retail logistics networks," European Journal of Operational Research, Elsevier, vol. 264(3), pages 948-966.
    14. Fichtinger, Johannes & Chan, Claire (Wan-Chuan) & Yates, Nicola, 2019. "A joint network design and multi-echelon inventory optimisation approach for supply chain segmentation," International Journal of Production Economics, Elsevier, vol. 209(C), pages 103-111.
    15. Hao Guo & Ying Zhang & Chunnan Zhang & Yu Liu & Yuan Zhou, 2020. "Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market," Annals of Operations Research, Springer, vol. 291(1), pages 361-386, August.
    16. Soumen Kumar Das & Magfura Pervin & Sankar Kumar Roy & Gerhard Wilhelm Weber, 2023. "Multi-objective solid transportation-location problem with variable carbon emission in inventory management: a hybrid approach," Annals of Operations Research, Springer, vol. 324(1), pages 283-309, May.
    17. Escalona, P. & Marianov, V. & Ordóñez, F. & Stegmaier, R., 2018. "On the effect of inventory policies on distribution network design with several demand classes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 229-240.
    18. Thomas Hacardiaux & Christof Defryn & Jean-Sébastien Tancrez & Lotte Verdonck, 2022. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 121-153, March.
    19. Farahani, Reza Zanjirani & Fallah, Samira & Ruiz, Rubén & Hosseini, Sara & Asgari, Nasrin, 2019. "OR models in urban service facility location: A critical review of applications and future developments," European Journal of Operational Research, Elsevier, vol. 276(1), pages 1-27.
    20. Thomas Hacardiaux & Jean-Sébastien Tancrez, 2020. "Assessing the environmental benefits of horizontal cooperation using a location-inventory model," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(4), pages 1363-1387, December.

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