An Efficient Greedy Heuristic for Warehouse-Retailer Network Design Optimization

Jia Shu ()
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Jia Shu: Department of Management Science and Engineering, School of Economics and Management, Southeast University, Nanjing, 210096 Jiangsu, P.R. China

Transportation Science, 2010, vol. 44, issue 2, 183-192

Abstract: In this paper, we study a warehouse-retailer network design (WRND) model that simultaneously makes the location, distribution, and warehouse-retailer echelon inventory replenishment decisions. Although a column generation algorithm was proposed recently in the literature, it remains a challenge to solve large size instances of this NP-hard problem efficiently and effectively. The purpose of this paper is to present a greedy algorithm. Computational results demonstrate that our greedy algorithm can solve large-scale WRND problems efficiently with errors within 3%--4% on average.

Keywords: facility location; distribution network design; multiechelon inventory management; greedy algorithm (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:44:y:2010:i:2:p:183-192

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