Design of a Distribution Network Using Primal-Dual Decomposition

J. A. Marmolejo, R. Rodríguez, O. Cruz-Mejia and J. Saucedo
Authors registered in the RePEc Author Service: Roman Rodriguez Aguilar

Mathematical Problems in Engineering, 2016, vol. 2016, 1-9

Abstract:

A method to solve the design of a distribution network for bottled drinks company is introduced. The distribution network proposed includes three stages: manufacturing centers, consolidation centers using cross-docking, and distribution centers. The problem is formulated using a mixed-integer programming model in the deterministic and single period contexts. Because the problem considers several elements in each stage, a direct solution is very complicated. For medium-to-large instances the problem falls into large scale. Based on that, a primal-dual decomposition known as cross decomposition is proposed in this paper. This approach allows exploring simultaneously the primal and dual subproblems of the original problem. A comparison of the direct solution with a mixed-integer lineal programming solver versus the cross decomposition is shown for several randomly generated instances. Results show the good performance of the method proposed.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:hin:jnlmpe:7851625

DOI: 10.1155/2016/7851625

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