Two-stage distributionally robust mixed-integer optimization model for three-level location–allocation problems under uncertain environment

Zhimin Liu, Zhong Wu, Ying Ji, Shaojian Qu and Hassan Raza

Physica A: Statistical Mechanics and its Applications, 2021, vol. 572, issue C

Abstract: The problem of the optimal three-level location–allocation of the transfer center, processing factory, and distribution center for supply chain networks under uncertain transportation cost and customer demand is studied. We establish a two-stage distributionally robust 0–1 mixed-integer optimization model by considering the uncertainty of the supply chain. Given the complexity of the model, this paper proposes a distribution–separation hybrid intelligent algorithm (DS-HIA) to solve the resulting model, yielding the optimal location and maximal expected return of supply chain in the worst-case distribution. A case study of the tea supply chain in Shanghai is then presented to investigate the specific influence of uncertainties on a three-level location, i.e., transfer center, tea factory, and distribution center. Moreover, we compare the DS-HIA with distribution–separation hybrid second-order particle swarm optimization algorithm, distribution–separation hybrid particle swarm optimization, distribution–separation hybrid genetic algorithm and distributionally robust L-shaped method to validate the proposed algorithm based on the computational time and the convergence rate.

Keywords: Supply chain management; Two-stage distributionally robust 0–1 mixed-integer optimization; Three-level location–allocation; Uncertainty; Algorithm (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:572:y:2021:i:c:s0378437121001448

DOI: 10.1016/j.physa.2021.125872

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