July  2006, 2(3): 339-349. doi: 10.3934/jimo.2006.2.339

Designing the distribution network for an integrated supply chain

1. 

Industrial and Manufacturing Engineering Department, Wayne State University, United States

2. 

Department of Decision Sciences and Singapore-MIT Alliance, National University of Singapore

Received  January 2006 Revised  May 2006 Published  July 2006

We consider an integrated distribution network design problem in which all the retailers face uncertain demand. The risk-pooling benefit is achieved by allowing some of the retailers to operate as distribution centers (DCs) with commitment in service level. The target is to minimize the expected total cost resulted from the DC location, transportation, and inventory. We formulate it as a two-stage nonlinear discrete stochastic optimization problem. The first stage decides which retailers to be selected as DCs and the second stage deals with the costs of DC-retailer assignment, transportation, and inventory. In the literature, the similar models require the demands of all retailers in each scenario to have their variances identically proportional to their means. In this paper, we remove this restriction. We reformulate the problem as a set-covering model and solve it by a column generation approach. With a variable fixing technique, we are able to efficiently solve problems of moderate-size (up to one hundred retailers and nine scenarios).
Citation: Jia Shu, Jie Sun. Designing the distribution network for an integrated supply chain. Journal of Industrial & Management Optimization, 2006, 2 (3) : 339-349. doi: 10.3934/jimo.2006.2.339
[1]

Reza Lotfi, Yahia Zare Mehrjerdi, Mir Saman Pishvaee, Ahmad Sadeghieh, Gerhard-Wilhelm Weber. A robust optimization model for sustainable and resilient closed-loop supply chain network design considering conditional value at risk. Numerical Algebra, Control & Optimization, 2021, 11 (2) : 221-253. doi: 10.3934/naco.2020023

[2]

Juliang Zhang, Jian Chen. Information sharing in a make-to-stock supply chain. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1169-1189. doi: 10.3934/jimo.2014.10.1169

[3]

Benrong Zheng, Xianpei Hong. Effects of take-back legislation on pricing and coordination in a closed-loop supply chain. Journal of Industrial & Management Optimization, 2021  doi: 10.3934/jimo.2021035

[4]

Nikolaz Gourmelon. Generation of homoclinic tangencies by $C^1$-perturbations. Discrete & Continuous Dynamical Systems - A, 2010, 26 (1) : 1-42. doi: 10.3934/dcds.2010.26.1

[5]

Tuvi Etzion, Alexander Vardy. On $q$-analogs of Steiner systems and covering designs. Advances in Mathematics of Communications, 2011, 5 (2) : 161-176. doi: 10.3934/amc.2011.5.161

[6]

Sabyasachi Dey, Tapabrata Roy, Santanu Sarkar. Revisiting design principles of Salsa and ChaCha. Advances in Mathematics of Communications, 2019, 13 (4) : 689-704. doi: 10.3934/amc.2019041

[7]

Alexander A. Davydov, Massimo Giulietti, Stefano Marcugini, Fernanda Pambianco. Linear nonbinary covering codes and saturating sets in projective spaces. Advances in Mathematics of Communications, 2011, 5 (1) : 119-147. doi: 10.3934/amc.2011.5.119

[8]

Guido De Philippis, Antonio De Rosa, Jonas Hirsch. The area blow up set for bounded mean curvature submanifolds with respect to elliptic surface energy functionals. Discrete & Continuous Dynamical Systems - A, 2019, 39 (12) : 7031-7056. doi: 10.3934/dcds.2019243

[9]

Ziteng Wang, Shu-Cherng Fang, Wenxun Xing. On constraint qualifications: Motivation, design and inter-relations. Journal of Industrial & Management Optimization, 2013, 9 (4) : 983-1001. doi: 10.3934/jimo.2013.9.983

[10]

Wen-Bin Yang, Yan-Ling Li, Jianhua Wu, Hai-Xia Li. Dynamics of a food chain model with ratio-dependent and modified Leslie-Gower functional responses. Discrete & Continuous Dynamical Systems - B, 2015, 20 (7) : 2269-2290. doi: 10.3934/dcdsb.2015.20.2269

[11]

Mohsen Abdolhosseinzadeh, Mir Mohammad Alipour. Design of experiment for tuning parameters of an ant colony optimization method for the constrained shortest Hamiltonian path problem in the grid networks. Numerical Algebra, Control & Optimization, 2021, 11 (2) : 321-332. doi: 10.3934/naco.2020028

[12]

Rabiaa Ouahabi, Nasr-Eddine Hamri. Design of new scheme adaptive generalized hybrid projective synchronization for two different chaotic systems with uncertain parameters. Discrete & Continuous Dynamical Systems - B, 2021, 26 (5) : 2361-2370. doi: 10.3934/dcdsb.2020182

2019 Impact Factor: 1.366

Metrics

  • PDF downloads (64)
  • HTML views (0)
  • Cited by (10)

Other articles
by authors

[Back to Top]