Article ID Journal Published Year Pages File Type
1023566 Transportation Research Part E: Logistics and Transportation Review 2010 16 Pages PDF
Abstract

This paper for the first time presents a novel model to simultaneously optimize location, allocation, capacity, inventory, and routing decisions in a stochastic supply chain system. Each customer’s demand is uncertain and follows a normal distribution, and each distribution center maintains a certain amount of safety stock. To solve the model, first we present an exact solution method by casting the problem as a mixed integer convex program, and then we establish a heuristic method based on a hybridization of Tabu Search and Simulated Annealing. The results show that the proposed heuristic is considerably efficient and effective for a broad range of problem sizes.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
Authors
, ,