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South African Journal of Industrial Engineering

On-line version ISSN 2224-7890
Print version ISSN 1012-277X

S. Afr. J. Ind. Eng. vol.21 n.2 Pretoria  2010

 

GENERAL ARTICLE

 

A location-inventory model including delivery delay cost and capacity constraints in a stochastic distribution network

 

 

A. Ahmadi Javid; N. Azad

Department of Industrial Engineering, Amirkabir University of Technology, Iran ahmadijavid@aut.ac.ir

 

 


ABSTRACT

In this paper, we present a distribution network design problem in a supply chain system that minimises the total cost of location, inventory, and delivery delay. Customers' demands are random, and multiple capacity levels are available for the distribution centers. The problem is first formulated as a mixed integer convex programming model to optimally solve medium-sized instances, and then a heuristic is developed for solving large-sized instances.


OPSOMMING

In hierdie artikel word 'n distribusienetwerkprobleem in 'n voorsieningsketting voorgehou waar die totale koste van die ligging, voorraad en afleweringsvertragings geminimiseer word. Die vraag is lukraak en verskeie kapasiteitsvlakke is beskikbaar in die verspreidingsentra. Die problem word eers geformuleer as 'n gemengde-heeltal-konvekse model sodat mediumgrootte gevalle geoptimiseer kan word, waarna 'n heuristieke benadering ontwikkel word vir die oplos van grootskaalse aktiwiteite.


 

 

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REFERENCES

[1] Ahmadi Javid,A. & Azad, N. 2010. Incorporating location, routing and inventory decisions in supply chain network design, Transportation Research, Part E, 46, pp 582-597.         [ Links ]

[2] Ahmadi Javid, A. & Davoudpour, H. 2009. A new model for single facility location based on service level, South African Journal of Industrial Engineering, 20, pp 219-227.         [ Links ]

[3] Daskin, M., Coullard, C. & Shen, Z.J. 2002. An inventory-location model: Formulation, solution algorithm and computational results, Annals of Operations Research, 110, pp 83-106.         [ Links ]

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[5] Miranda, P.A. & Garrido, R.A. 2004. Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand, Transportation Research, Part E, 40, pp 183-207.         [ Links ]

[6] Miranda, P.A. & Garrido, R.A. 2008. Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity, Transportation Research, Part E, 44, pp 47-65.         [ Links ]

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[8] Shen, Z.J. 2005. A multi-commodity supply chain design problem, IIE Transactions, 37, pp 753-762.         [ Links ]

[9] Shen, Z.J. 2006. A profit maximizing supply chain network design model with demand choice flexibility, Operations Research Letters, 34, pp 673-682.         [ Links ]

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[15] Teo, C.P., Ou, J. & Goh, M. 2001. Impact on inventory costs with consolidation of distribution centers, IIE Transactions 33, pp 99-110. 62        [ Links ]

 

 

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