A heuristic approach to the design of fortified distribution networks

Qingwei Li and Alex Savachkin

Transportation Research Part E: Logistics and Transportation Review, 2013, vol. 50, issue C, 138-148

Abstract: Lean distribution networks have been increasingly exposed to the risk of unpredicted disruptions causing significant economic forfeitures. At the same time, the existing literature features a limited number of studies which consider fortification of facilities for improving network reliability. In this paper, we develop a reliable uncapacitated fixed-charge location model with fortification to support the design of distribution networks. The model considers heterogeneous facility failure probabilities, one layer of supplier backup, and facility fortification within a finite budget. The problem is formulated as a nonlinear mixed integer programming model which is proved to be NP-hard. We develop a Lagrangian relaxation-based (LR) heuristic solution algorithm and demonstrate its computational efficiency for solving large-scale problems.

Keywords: Distribution; Networks; Reliable; Fortification; Lagrangian relaxation; Heuristic (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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DOI: 10.1016/j.tre.2012.10.004

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