A Heuristic for the Two-Echelon Multi-Period Multi-Product Location–Inventory Problem with Partial Facility Closing and Reopening

In this paper, the two-echelon multi-period multi-product location–inventory problem with partial facility closing and reopening is studied. For each product period, plants serve warehouses, which consolidation hubs, service customers independent, normally distributed demands. The schedule of construction, temporary closing, modular capacities facilities, continuous-review inventory control policies at allocation customer demands to hubs warehouses are determined. levels for stockout during lead time violation warehouse hub explicitly considered. proposed mixed-integer non-linear program minimizes weighted summation number different facilities logistical costs, so that can be controlled. Since model np-hard, multi-start construction tabu search improvement heuristic (MS-CTSIH) two strategies modified MS-CTSIH incorporating both proposed. experiment shows appear non-dominated, yields best results. comparison a commercial solver on small instance efficiency effectiveness MS-CTSIH. sensitivity analyses parameters performed large instance.