A SUPPLY CHAIN NETWORK DESIGN PROBLEM WITH CONCAVE INVENTOY COSTS
A supply chain network design problem consists of determining the location of plants and distribution centres, product assignments, transportation and distribution, and inventory levels at facilities, which minimize the total cost, including production, handling, inventory, transportation and distribution costs. Inventory costs are represented as concave functions and facility locations as binary variables, therefore a supply chain network design problem can be formulated as a large mixed integer optimization problem with concave functions. In this paper, the Lagrangian relaxation method is developed for the supply chain network design problem. The Lagrangian relaxation problem formed by relaxing flow conservation constraints is represented as continuous knapsack problems. Finally, for obtaining approximate solutions, a Lagrangian heuristic based on solving linear approximate network flow problems is presented.
supply chain network design multi-commodity flow optimization
S. Tei N. Katayama S. Yurimoto
Distribution and Logistics Systems, Ryutsu Keizai University 120 Hirahata, Ryugasaki, Ibaraki, Japan
国际会议
上海
英文
1-6
2009-08-02（万方平台首次上网日期，不代表论文的发表时间）