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A computational study for common network design in multi-commodity supply chains
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DOI：10.1016/j.cor.2013.11.009.png)
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Abstract
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In this paper, we study a supply chain network design problem which consists of one external supplier, a set of potential distribution centers, and a set of retailers, each of which is faced with uncertain demands for multiple commodities. The demand of each retailer is fulfilled by a single distribution center for all commodities. The goal is to minimize the system-wide cost including location, transportation, and inventory costs. We propose a general nonlinear integer programming model for the problem and present a cutting plane approach based on polymatroid inequalities to solve the model. Randomly generated instances for two special cases of our model, i.e., the single-sourcing UPL&TAP and the single-sourcing multi-commodity location-inventory model, are provided to test our algorithm. Computational results show that the proposed algorithm can solve moderate-sized problem instances efficiently. (C) 2013 Elsevier Ltd. All rights reserved.
Keywords:
Integrated supply chain design
Conic integer programming
Polymatroid cuts
Cutting plane
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