A computational study for common network design in multi-commodity supply chains |
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| Affiliation: | 1. School of Business and Department of Mathematics, Nanjing University, China;2. Department of Industrial and Systems Engineering, The University of Tennessee at Knoxville, 524 John D. Tickle Building, Knoxville, TN 37996, United States;1. University of Castilla-La Mancha, Escuela Técnica Superior de Ingenieros Industriales, 13071 Ciudad Real, Spain;2. Pontificia Universidad Católica de Chile, Industrial and Systems Engineering Department, Santiago, Chile;1. Department of Industrial Engineering, K.N. Toosi University of Technology, Tehran, Iran;2. Department of Industrial Engineering, University of Science and Technology of Mazandaran, Behshahr, Iran;1. Mathematics Department, Regional University of Blumenau, Antônio da Veiga, 140, Zip Code: 89012-900, Blumenau, SC, Brazil;2. Production and Systems Engineering Department, Federal University of Santa Catarina, Trindade Campus, Caixa Postal 476, Zip Code: 88010-970, Florianópolis, SC, Brazil;3. Department of Management, Haub School of Business, Saint Joseph’s University, 5600 City Avenue, Philadelphia, PA 19131, United States;1. Centre for Logistics and Heuristic Optimisation, Kent Business School, University of Kent, Canterbury, Kent CT27PE, UK;2. John Molson School of Business, Concordia University, Montreal, Quebec, Canada H3G 1M8 |
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| Abstract: | 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. |
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| Keywords: | Integrated supply chain design Conic integer programming Polymatroid cuts Cutting plane |
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