Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand

Miranda, PA; GARRIDO, RA

Abstract

In this paper, we propose a simultaneous approach to incorporate inventory control decisions-such as economic order quantity and safety stock decisions-into typical facility location models, which are used to solve the distribution network design problem. A simultaneous model is developed considering a stochastic demand, modeling also the risk pooling phenomenon. We present a non-linear-mixed-integer model and a heuristic solution approach, based on Lagrangian relaxation and the sub-gradient method. In a numerical application, we found that the potential cost reduction, compared to the traditional approach, increases when the holding costs and/or the variability of demand are higher. © 2003 Elsevier Ltd. All rights reserved.

Más información

Título según WOS: Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand
Título según SCOPUS: Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand
Título de la Revista: TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volumen: 40
Número: 3
Editorial: PERGAMON-ELSEVIER SCIENCE LTD
Fecha de publicación: 2004
Página de inicio: 183
Página final: 207
Idioma: English
URL: http://linkinghub.elsevier.com/retrieve/pii/S1366554503000735
DOI:

10.1016/j.tre.2003.08.006

Notas: ISI, SCOPUS