A LAGRANGEAN HEURISTIC FOR AN INBOUND SUPPLY CHAIN

Abstract In this paper, we study a structure issued from a real case. Raw materials (RMs) are sent by suppliers to a distribution center (DC) and then transported to a unique plant. They can be stored in the plant. The inventory capacity is limited in the plant as well as in DC. The transportation capacity between DC and the plant is also limited. A mixed-integer programming (MIP) formulation is presented and a Lagrangean relaxation solution procedure is proposed. Computational experiments prove that this Lagrangean heuristic procedure provides solutions close to the optimal solution in a very short time.