An integrated supply chain problem: a nested lagrangian relaxation approach

Ali Diabat () and Jean-Philippe Richard

Annals of Operations Research, 2015, vol. 229, issue 1, 303-323

Abstract: The integration of tactical-level with strategic-level decisions in the supply chain represents an opportunity for substantial cost savings and provides a means for companies to gain a competitive advantage. Much of the previous research on supply chain network design has handled facility location decisions and inventory management decisions independently. In this paper, we develop a new joint facility location inventory model that is based on an approximate one-warehouse multi-retailer inventory model for each warehouse, and on the uncapacitated facility location problem. The proposed integer programming model simultaneously makes decisions pertaining to location and inventory policies on two echelons of the supply chain, the warehouse and the retailers. We develop two Lagrangian-relaxation-based algorithms to solve this model, and compare their performance to that of a conventional branch-and-bound algorithm on randomly generated problems. Copyright Springer Science+Business Media New York 2015

Keywords: Supply chain; Lagrangian relaxation; Integer programming; Integrated models; Location-inventory (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10479-015-1818-4 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:229:y:2015:i:1:p:303-323:10.1007/s10479-015-1818-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-015-1818-4

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().