Location/allocation and routing decisions in supply chain network design

Purpose – The purpose of the paper is to present an integrated model for the location of warehouse, the allocation of retailers to warehouses, and finding the number of vehicles to deliver the demand and the required vehicle routing in order to minimize total transportation costs, fixed and operating costs, and routing costs.Design/methodology/approach – The model assumes that the number of plants has already been determined and answers the following questions: what is the number of warehouses to open? How warehouse are allocated to plants? How retailers are allocated to warehouses? Who are the retailers that will be visited and in what order? How many vehicles are required for each route? What are the total minimum costs?Findings – The model was formulated as a mixed integer linear programming model and solved using Lagrange relaxation and sub‐gradient search for the location/allocation module and a traveling salesman heuristic for the routing module. The results for the randomly selected problems show t...

[1]  Christos D. Tarantilis,et al.  A threshold accepting metaheuristic for the heterogeneous fixed fleet vehicle routing problem , 2004, Eur. J. Oper. Res..

[2]  Andreas Klose,et al.  A Lagrangean relax-and-cut approach for the two-stage capacitated facility location problem , 2000, Eur. J. Oper. Res..

[3]  Reha Uzsoy,et al.  Production, Manufacturing and Logistics Outbound supply chain network design with mode selection, lead times and capacitated vehicle distribution centers , 2005 .

[4]  Gilbert Laporte,et al.  A unified tabu search heuristic for vehicle routing problems with time windows , 2001, J. Oper. Res. Soc..

[5]  C. K. Y. Lin,et al.  A location-routing-loading problem for bill delivery services , 2002 .

[6]  Gilbert Laporte,et al.  An Integer L-Shaped Algorithm for the Capacitated Vehicle Routing Problem with Stochastic Demands , 2002, Oper. Res..

[7]  Hanif D. Sherali,et al.  Global Optimization Procedures for the Capacitated Euclidean and lp Distance Multifacility Location-Allocation Problems , 2002, Oper. Res..

[8]  Alex Van Breedam,et al.  A parametric analysis of heuristics for the vehicle routing problem with side-constraints , 2002, Eur. J. Oper. Res..

[9]  A. Sohal,et al.  Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturin , 2005 .

[10]  Gianpaolo Ghiani,et al.  An efficient transformation of the generalized vehicle routing problem , 2000, Eur. J. Oper. Res..

[11]  Kathrin Klamroth,et al.  A Bi-Objective Median Location ProblemWith a Line Barrier , 2002, Oper. Res..

[12]  Nicola Secomandi,et al.  A Rollout Policy for the Vehicle Routing Problem with Stochastic Demands , 2001, Oper. Res..

[13]  Maria Grazia Speranza,et al.  The application of a vehicle routing model to a waste-collection problem: two case studies , 2002, J. Oper. Res. Soc..

[14]  Albert P. M. Wagelmans,et al.  A savings based method for real-life vehicle routing problems , 1999, J. Oper. Res. Soc..

[15]  Justo Puerto,et al.  Multiobjective solution of the uncapacitated plant location problem , 2003, Eur. J. Oper. Res..

[16]  I D Giosa,et al.  New assignment algorithms for the multi-depot vehicle routing problem , 2002, J. Oper. Res. Soc..

[17]  Said Salhi,et al.  Constructive heuristics for the uncapacitated continuous location-allocation problem , 2001, J. Oper. Res. Soc..

[18]  Daniel Granot,et al.  A Three-Stage Model for a Decentralized Distribution System of Retailers , 2003, Oper. Res..

[19]  J Dethloff,et al.  Relation between vehicle routing problems: an insertion heuristic for the vehicle routing problem with simultaneous delivery and pick-up applied to the vehicle routing problem with backhauls , 2002, J. Oper. Res. Soc..

[20]  J. Sheu,et al.  Locating manufacturing and distribution centers: An integrated supply chain-based spatial interaction approach , 2003 .

[21]  Diptesh Ghosh,et al.  Neighborhood search heuristics for the uncapacitated facility location problem , 2003, Eur. J. Oper. Res..

[22]  Vedat Verter,et al.  The plant location and flexible technology acquisition problem , 2002, Eur. J. Oper. Res..

[23]  Kwan Suk Lee,et al.  A practical approach to solving a newspaper logistics problem using a digital map , 2002 .

[24]  Fang-Chih Tien,et al.  Self-organizing feature maps for solving location-allocation problems with rectilinear distances , 2004, Comput. Oper. Res..

[25]  R. D. Galvão,et al.  A hierarchical model for the location of perinatal facilities in the municipality of Rio de Janeiro , 2002, Eur. J. Oper. Res..

[26]  George Ioannou,et al.  A greedy look-ahead heuristic for the vehicle routing problem with time windows , 2001, J. Oper. Res. Soc..

[27]  J. Rhee,et al.  An application of SCM-based logistics planning in the trade between south and north Korea , 2002 .

[28]  Kin Keung Lai,et al.  An optimization model for a cross-border logistics problem: a case in Hong Kong , 2002 .

[29]  Mitsuo Gen,et al.  The balanced allocation of customers to multiple distribution centers in the supply chain network: a genetic algorithm approach , 2002 .

[30]  Zvi Drezner,et al.  Solving the multiple competitive facilities location problem , 2002, Eur. J. Oper. Res..

[31]  Francisco Saldanha-da-Gama,et al.  Dynamic multi-commodity capacitated facility location: a mathematical modeling framework for strategic supply chain planning , 2006, Comput. Oper. Res..

[32]  George Ioannou,et al.  A synthesis of assignment and heuristic solutions for vehicle routing with time windows , 2004, J. Oper. Res. Soc..

[33]  Maria Grazia Speranza,et al.  The periodic vehicle routing problem with intermediate facilities , 2002, Eur. J. Oper. Res..

[34]  CD Tarantilis,et al.  A list based threshold accepting metaheuristic for the heterogeneous fixed fleet vehicle routing problem , 2003, J. Oper. Res. Soc..

[35]  Chung-Chi Hsieh,et al.  Reliability and cost optimization in distributed computing systems , 2003, Comput. Oper. Res..

[36]  Francis J. Vasko,et al.  A large-scale application of the partial coverage uncapacitated facility location problem , 2003, J. Oper. Res. Soc..

[37]  Cem Saydam,et al.  Solving large-scale maximum expected covering location problems by genetic algorithms: A comparative study , 2002, Eur. J. Oper. Res..

[38]  M. Gen,et al.  Study on multi-stage logistic chain network: a spanning tree-based genetic algorithm approach , 2002 .