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Outbound supply chain network design with mode selection and lead time considerations

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  • Erdem Eskigun
  • Reha Uzsoy
  • Paul V. Preckel
  • George Beaujon
  • Subramanian Krishnan
  • Jeffrey D. Tew

Abstract

We present a large‐scale network design model for the outbound supply chain of an automotive company that considers transportation mode selection (road vs. rail) and explicitly models the relationship between lead times and the volume of flow through the nodes of the network. We formulate the problem as a nonlinear zero‐one integer program, reformulate it to obtain a linear integer model, and develop a Lagrangian heuristic for its solution that gives near‐optimal results in reasonable time. We also present scenario analyses that examine the behavior of the supply chain under different parameter settings and the performance of the solution procedures under different experimental conditions. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007

Suggested Citation

  • Erdem Eskigun & Reha Uzsoy & Paul V. Preckel & George Beaujon & Subramanian Krishnan & Jeffrey D. Tew, 2007. "Outbound supply chain network design with mode selection and lead time considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(3), pages 282-300, April.
    • Handle: RePEc:wly:navres:v:54:y:2007:i:3:p:282-300
    DOI: 10.1002/nav.20205
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    Cited by:

    1. Songtao Zhang & Chunyang Zhang & Siqi Zhang & Min Zhang, 2018. "Discrete Switched Model and Fuzzy Robust Control of Dynamic Supply Chain Network," Complexity, Hindawi, vol. 2018, pages 1-11, January.
    2. Ho‐Yin Mak & Zuo‐Jun Max Shen, 2009. "A two‐echelon inventory‐location problem with service considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(8), pages 730-744, December.

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