We introduce a distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers. In addition, the model incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term. The model is formulated as a non-linear integer-programming problem. Model proper...

The stochastic location-inventory network design model with risk pooling considers the distribution network design problem in which all the retailers face uncertain demand. The riskpooling benefits can be achieved by allowing some of the retailers to operate as distribution centers (DCs) for other retailers to commit a given service level. The target is to minimize the expected total cost of DC...

We study the location-inventory problem in three-level supply networks. Our model integrates three decisions: the distribution centers location, flows allocation, and shipment sizes. We propose a nonlinear continuous formulation, including transportation, fixed, handling and holding costs, which decomposes into a closed-form equation and a linear program when the DC flows are fixed. We thus dev...

We consider a multi-location inventory system where inventory choices at each location are centrally coordinated. Lateral Transshipments are allowed as recourse actions within the same echelon in the inventory system to reduce costs and improve service level. However this transshipment process usually causes undesirable lead times. In this paper, we propose a multiobjective model of the multi-l...

the paper discusses the location-allocation model for logistic networks and distribution centers through considering uncertain parameters. in real-world cases, demands and transshipment costs change over the period of the time. this may lead to large cost deviation in total cost. scenario based robust optimization approaches are proposed where occurrence probability of each scenario is not know...

A comprehensive and integrated study of any supply chain (SC) environment is a vital requirement that can create various advantages for the SC owners. This consideration causes productive managing of the SC through its whole wide components from upstream suppliers to downstream retailers and customers.  On this issue, despite many valuable studies reported in the current literature, considerabl...

This study considers a reliable location – inventory problem for a supply chain system comprising one supplier, multiple distribution centers (DCs), and multiple retailers in which we determine DCs location, inventory replenishment decisions and assignment retailers to DCs, simultaneously. Each DC is managed through a continuous review (S, Q) inventory policy. For tackling real world conditions...

In this paper, the stochastic location-routing-inventory problem is considered in which retailers’ demands and lead-times are stochastic. Demand quantities follow Poisson distribution and lead-times are functions of the shortage quantity. It is also assumed that both retailers and distributors hold inventory and follow (S-1, S) inventory policy. According to these assumptions, we use METRIC (i....

We study the location-inventory model as introduced by Teo et al. (2001) to analyze the impact of consolidation of distribution centers on facility and inventory costs. We extend their result on profitability of consolidation. We associate a cooperative game with each location-inventory situation and prove that this game has a nonempty core for identical and independent demand processes. This i...