The Location Model with Risk Pooling (LRMP) seeks to locate distribution centers to minimize the sum of fixed location costs, transportation costs, and inventory costs. The risk-pooling effects of consolidating inventory sites are explicitly handled in the location model. In this paper, we present a stochastic version of the LMRP (SLMRP) that optimizes location, inventory, and allocation decisi...

Supply chain design models in the literature typically assume that facilities never fail. However, in the real world cases facilities are always subject to disruptions of various sorts due to natural disasters, strikes, machine breakdowns, power outages, and other factors. This paper presents an integrated supply chain network design model with the consideration of facility disruptions. Specifi...

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 invent...

A stochastic multiproduct capacitated facility location problem involving a single supplier and multiple customers is investigated. Due to the stochastic demands, a reasonable amount of safety stock must be kept in the facilities to achieve suitable service levels, which results in increased inventory cost. Based on the assumption of normal distributed for all the stochastic demands, a nonlinea...

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...

Non-uniform distribution of customers in a region and variation of their maximum willingness to pay at distinct areas make regional pricing a practical method to maximize the profit of the distribution system. By subtracting the classic objective function, which minimizes operational costs from revenue function, profit maximization is aimed. A distribution network is designed by determining the...

A fuzzy random model of Combined Location Routing and Inventory Problem (CLRIP) has been presented with continuous review inventory policy in B2C distribution environment for the first time. Demands of customers and distribution centers are uncertain and have been assumed to be fuzzy random variables. To solve the model, first the expected value of fuzzy random variable and the possibilistic me...

Facility location, inventory control and vehicle routes scheduling are critical and highly related problems in the design of logistics system for e-business. Meanwhile, the return ratio in Internet sales was significantly higher than in the traditional business. At the same time, the customer’s time-satisfaction degree had become one of the important factors for competition .A multi-objective i...

This paper presents a location-inventory-pricing model for designing the distribution network of a supply chain with price-sensitive demands and inventory-capacity constraints. The supply chain has market power and uses markup pricing. An efficient Lagrangian relaxation algorithm is proposed to solve the model. Our numerical study shows that by moderately increasing the number of possible value...