A hybrid algorithm for stochastic single-source capacitated facility location problem with service level requirements

Abstract

Facility location models are observed in many diverse areas such as communication networks, transportation, and distribution systems planning. They play significant role in supply chain and operations management and are one of the main well-known topics in strategic agenda of contemporary manufacturing and service companies accompanied by long-lasting effects. We define a new approach for solving stochastic single source capacitated facility location problem (SSSCFLP). Customers with stochastic demand are assigned to set of capacitated facilities that are selected to serve them. It is demonstrated that problem can be transformed to deterministic Single Source Capacitated Facility Location Problem (SSCFLP) for Poisson demand distribution. A hybrid algorithm which combines Lagrangian heuristic with adjusted mixture of Ant colony and Genetic optimization is proposed to find lower and upper bounds for this problem. Computational results of various instances with distinct properties indicate that proposed solving approach is efficient.

Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy

“…As a result, they showed that the proposed heuristic outperforms the current method and leads to a considerable reduction in inventory. Extra research (de Kok, 1985;Tempelmeier, 2007;Selçuk & A gralı, 2013;Jaggi et al, 2016;Salemi, 2016;Oblak et al, 2017) has also been carried out to address diverse aspects of backordering and service-level constraint of fabrication systems.…”

Joint effects of stochastic machine failure, backorder of permissible shortage, rework, and scrap on stock replenishing decision

“…With a help from an analytical model and the Lagrangian multiplier technique, they were able to simultaneously derive the optimal order quantity, lead time, and number of shipments to each customer per cycle. Additional studies (Fergany, 2016;Rakyta et al, 2016;Jindal & Solanki, 2016;Jaggi et al, 2016;Qu & Ji, 2016;Salemi, 2016;Oblak et al, 2017;van Rhyn & Hancke, 2017) have also been conducted to explore the effects of permitted backlogging and service level constraint on fabrication systems. Nevertheless, little attention has been paid to exploration of joint effects of machine failure, backorder of permissible shortage, rework and scrap on stock replenishing decision, and the present work is set to fill this gap.…”

Assessment of Production Network Scenarios Based on Economic Value Added

“…Adaptations to the global production network are strategic decisions because of their long-term impact on companies. Many decisions like the opening of new sites are difficult to revise and are connected with many unknowns due to the long planning period [5]. Therefore, thorough decision-making is essential.…”