Joint Facility Location and Supplier Selection Decisions of Distribution Networks with Random Supply Lead Time
Supplier selection and facility location problems are often considered separately. In this study, we integrate decisions that are usually made in three stages: the location of Distribution Centers (DCs), the allocation of suppliers to DCs, and the assignment of retailers to the located DCs. More specifically, the distribution network under consideration is composed of a set of potential suppliers serving a set of retailers through a set of DCs to locate. We assume that each retailer faces a random demand of a single product type, and the supply lead-time from each supplier to each DC is random. Economic Order Quantity policy is used by each DC to control its inventory, and a safety stock is kept to ensure a given retailer service level. The goal is to minimize total inventory and safety stock costs at the DCs, ordering and transportation costs across the network, and fixed DCs location costs. The resulting problem is a difficult non-linear combinatorial optimization problem. A Lagrangian relaxation approach is proposed to generate efficient solutions.
Distribution network design Location Combinatorial optimization Lagrangian relaxation
Guy Aimé TANONKOU Lyès BENYOUCEF Xiaolan XIE
INRIA LORRAINE–Ile du Saulcy Metz Cedex 01 France Ecole Nationale Supérieure des Mines de St Etienne (ENSM.SE),Engineering and Heath Division,France
国际会议
北京
英文
2007-05-30（万方平台首次上网日期，不代表论文的发表时间）