A Capacitated Multi - Echelon Joint Location - Inventory Model for Supply Chain Management
نویسنده
چکیده
In this paper we impose a capacity restriction on a multi-echelon joint location-inventory model. The setting is that of a single product manufacturer distributing its product to a number of warehouses, each of which is assigned to a number of retailers. There is no lateral supply between warehouses and they do not share retailers. The model simultaneously makes decisions on location and inventory policy for both warehouses and retailers, and restricts the capacity of the warehouses to a point where it satisfies the sum of the reorder point and the reorder quantity. The model is then solved in GAMS, and a numerical study is carried out to show that the model outperforms separate models. In addition the sensitivity of the capacity constraint is analyzed.
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