Incorporating location, routing and inventory decisions in supply chain network design

Amir Ahmadi Javid and Nader Azad

Transportation Research Part E: Logistics and Transportation Review, 2010, vol. 46, issue 5, 582-597

Abstract: This paper for the first time presents a novel model to simultaneously optimize location, allocation, capacity, inventory, and routing decisions in a stochastic supply chain system. Each customer's demand is uncertain and follows a normal distribution, and each distribution center maintains a certain amount of safety stock. To solve the model, first we present an exact solution method by casting the problem as a mixed integer convex program, and then we establish a heuristic method based on a hybridization of Tabu Search and Simulated Annealing. The results show that the proposed heuristic is considerably efficient and effective for a broad range of problem sizes.

Keywords: Distribution; network; Integrated; supply; chain; design; Facility; location; Inventory; control; Vehicle; routing; Capacity; level (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (47)

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