A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

Diabat, Ali; Richard, Jean‐Philippe P.; Codrington, Craig W.

doi:10.1007/s10479-011-0915-2

Cited by 76 publications

(24 citation statements)

References 48 publications

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“…The main objectives are the total operating expenses in the supply chain and some cost indicators derived from those. The suggested solving methods are Lagrangian relaxation-based method [1], genetic algorithms [2,3,4,5], game theory methods [6], heuristic methods [7,8,9,10], decision-making methods [11,12,13], fuzzy optimization [14], ant colony algorithm [15], particle swarm optimization [16], modified fruit fly optimization [17], other linear and non-linear techniques [18,19,20,21].…”

Section: Literature Reviewmentioning

confidence: 99%

Procedure for determining transport and warehousing systems characteristics in industrial enterprises in megapolis

2017

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Abstract. The most common problem among a vast variety of design and performance management problems for the industrial enterprises supply chain networks is determining transport and storage processes' characteristics in the areas of high population density. The divergence of the logistic structure development in the area has a major influence on the choice of location for the warehouses and the characteristics of the corresponding material flows. This article addresses the issues of determining transport and warehousing systems characteristics in a major population center and its suburbs. In particular, this means the warehouse location and the delivery lot sizes. The article suggests a procedure for solving this problem based on a set of mathematical models using linear and non-linear optimization via the standard algorithms of common computer software like Microsoft Excel, Mathcad, MatLab, etc.

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Section: Literature Reviewmentioning

confidence: 99%

Procedure for determining transport and warehousing systems characteristics in industrial enterprises in megapolis

2017

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“…The rate of deterioration of the items was constant over time and the selling price decreased monotonically at a constant rate with deterioration of items. Diabat and Richard [18] formulated the economic order quantity policy and investigated the strategic and tactical decisions previewed as the number of distribution centers in inventory management. A stochastic model by Kizito, Kariko and Lating [19] was proposed to determine the optimal decision of ordering versus not ordering milk powder in supermarkets.…”

Section: Literature Reviewmentioning

confidence: 99%

The Joint Location Inventory ReplenishmentProblem at a Supermarket Chainunder Stochastic Demand

Mubiru¹,

Buhwezi²,

Lating³

2017

JIEMS

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We consider a joint location inventory replenishment problem involving a chain of supermarkets at designated locations. Associated with each supermarket is stochastic stationary demand where inventory replenishment periods are uniformly fixed over the supermarkets. Considering inventory positions of the supermarket chain, we formulate a finite state Markov decision process model where states of a Markov chain represent possible states of demand for milk powder product. The unit replenishment cost, shortage cost, demand and inventory positions are used to generate the total inventory cost matrix; representing the long run measure of performance for the Markov decision process problem. The problem is to determine for each supermarket at a specific location an optimal replenishment policy so that the long run inventory costs are minimized for the given state of demand. The decisions of replenishing versus not replenishing at a given location are made using dynamic programming over e finite period planning horizon. We test the model using data from two supermarket locations. The model demonstrates the existence of an optimal state-dependent replenishment policy and inventory costs for two selected supermarket locations.

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“…The lower bound from their model gives the optimal solution. Diabat et al (2013c) solve a multi-echelon joint inventory-location model using a Lagrangian relaxation based approach. The model is a mixed integer nonlinear program and the efficiency of the algorithm was studied through a computational study.…”

Section: Literature Reviewmentioning

confidence: 99%

A Closed-Loop Capacitated Warehouse Location Model with Risk Pooling

2014

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The irreversible environmental harm caused by various industrial operations, along with the newly enacted environmental regulations, shifts the focus of governments and corporations in the direction of sustainable supply chains rather than the traditional ones. One of the main ways this can be done is by introducing a reverse supply chain, in addition to the traditional forward supply chain, to create the so-called closed-loop supply chain. We extend a capacitated warehouse location model with risk pooling (CLMRP) by adding a reverse supply chain where recovered products are sorted and collected by collection centers (CCs) and sent to remanufacturing centers (RCs). The products are then either sent back to the forward supply chain or sent to recycling centers or disposal sites. The objective of the closed loop capacitated warehouse location model with risk pooling (CLCLMRP) is to minimize the sum of the fixed facility location, transportation, and inventory carrying costs for both the forward and reverse supply chains. The model will also determine distribution centers (DCs) and remanufacturing centers' (RCs) locations, shipment sizes and frequency from plant to DCs and RCs, working inventories and safety stock levels at DCs and RCs and assignment of retailers' demand to the DCs and returns to the RCs. Results showed that an increase in both shipping costs and inventory holding costs result in moving the supply chain towards a decentralized supply chain. An increase in both level of returns from the retailers to the CCs and from the CCs to the RCs leads to an increase in the total cost of the closed-loop supply chain.

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A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

Cited by 76 publications

References 48 publications

Procedure for determining transport and warehousing systems characteristics in industrial enterprises in megapolis

Procedure for determining transport and warehousing systems characteristics in industrial enterprises in megapolis

The Joint Location Inventory ReplenishmentProblem at a Supermarket Chainunder Stochastic Demand

A Closed-Loop Capacitated Warehouse Location Model with Risk Pooling

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