Reliable location models with transportation mode selection

Leena Hamdan and Abdulrahman R. Alenezi

International Journal of Industrial and Systems Engineering, 2025, vol. 50, issue 4, 465-491

Abstract: In this study, we examined a three-echelon supply chain network consisting of candidate facilities, hubs, and customers. Products are delivered from facilities to customers directly or via hubs, utilising different transportation modes. Full truckload shipments are employed for delivering products from facilities to customers or hubs, while less than truckload shipments are utilised for products from hubs to customers. Considering the susceptibility of facilities to failure, customers are allocated to either a primary facility exclusively or both primary and secondary facilities, with the secondary facility serving customers only during the failure period. The problem is mathematically formulated as a linear integer programming model and subsequently solved using the Lagrange relaxation procedure. The solution was obtained with an average computational time of 96.6 seconds, demonstrating a gap between upper and lower bounds averaging 0.158%.

Keywords: supply chain management; SCM; reliability; transportation mode; Lagrange relaxation; facility location models. (search for similar items in EconPapers)
Date: 2025
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