Combined location-routing problems: A synthesis and future research directions

Min, Hokey; Jayaraman, Vaidyanathan; Srivastava, Rajesh

doi:10.1016/s0377-2217(97)00172-0

Cited by 408 publications

(208 citation statements)

References 61 publications

Supporting

Mentioning

190

Contrasting

Unclassified

Order By: Relevance

“…[3] believed that although the expansion of facilities could improve response speed, this requires the investment of additional costs. [4] Integrated lead time with ability to create a cost-effective and responsive supply chain as a mixed strategy for linking production and logistics.…”

Section: A Motivation and Research Opportunitymentioning

confidence: 99%

“…Among the facilities location, inventory management, and distribution decisions, any two of the integration are discussed extensively. Please refer to [3] for the location-routing models, [6] and [7] for the inventory-routing models, and [2] and [8] for the location-inventory models.…”

Section: A Motivation and Research Opportunitymentioning

confidence: 99%

“…Constraint (2) indicates that the retailer shall choose one distribution center from all candidates j for the replenishment to be made. Constraint (3) indicates that the items of the retailer shall be replenished by distribution center j selected from all candidates. Constraint (4) indicates that the replenishment of items of the retailer should be avoided without distribution center j. Constraint (5) shows that each distribution center is allowed to be unequal.…”

Section: A Problem Definitionmentioning

confidence: 99%

See 2 more Smart Citations

Item-Location Assignment to Responsiveness for Fulfilling Rush Demands in a Manufacturing Network

Chen¹

2014

IJMO

View full text Add to dashboard Cite

Abstract-This study investigates the business impacts of sustainability and managerial insights in terms of the robustness of a logistics system. A mathematical optimization model and a distribution responsiveness index are developed in this paper. The index includes stocking distributiveness, transportation link diversity, and service level. The study identified a discontinuous relationship between costs and responsiveness through the operational decision of redistribution. Knowing this relationship will allow managers to determine the minimum investment to drive performance improvement and thus, make the best business-level decision at the appropriate moment. In a proper ratio of urgent to non-urgent, the advantage of item-reallocation will be emphasized if distribution responsiveness is better after its reallocation. After reallocation, the distribution center can achieve better distribution responsiveness with low inventory costs and total cost (R/C ratio). When transportation costs increase after item-reallocation, item-reallocation cannot obviously help the distribution center enhance responsiveness (R/C ratio). When fixed costs are low and facilities increase after item-reallocation, distribution responsiveness (R/C ratio) is likewise high regardless of item-reallocation. IndexTerms-Stocking item reshuffling (SIR), location-inventory network, Distribution network responsiveness. I. INTRODUCTION A. Motivation and Research OpportunityResponsiveness and operating costs are generally believed to contradict each other. A distribution center for fast delivery tends to significantly reduce inventory in each phase of the commodity circulation process as the cost and risk of goods on hand increases. Meanwhile, customers always ask for instant replenishment to supplies. A short lead time for order fulfillment is better; customers absolutely cannot tolerate shortage. To meet the requirement of retail terminals for replenishment, the distribution center must be capable of making fast delivery. Effective supply chain management can result in the rapid speed and elasticity in enterprises and reduce operating cost while improving the delivery promise capacity for customers. Conventional management strategies seek to address the uncertain requirements of customers by building distribution centers or enhancing the prepared inventory. Therefore, this strategy increases facility costs and the cost of inventories, eroding corporate profits. Unfortunately, increasing operating costs do not necessarily translate to any tangible improvement in performance. The relationship between operating costs and performance is nonlinear stepwise.Overall, increases in storage capacity and inventory at the end can improve the response ability to deliver. In contrast, centralized storage in a central warehouse can reduce the cost of inventories, and centralized delivery can reduce transportation cost. However, decision makers encounter difficulties in judging how costs increase based on a simple rule to enhance the performance of a supply cha...

show abstract

Section: A Motivation and Research Opportunitymentioning

confidence: 99%

Section: A Motivation and Research Opportunitymentioning

confidence: 99%

Section: A Problem Definitionmentioning

confidence: 99%

See 1 more Smart Citation

Item-Location Assignment to Responsiveness for Fulfilling Rush Demands in a Manufacturing Network

Chen¹

2014

IJMO

View full text Add to dashboard Cite

show abstract

“…We refer the reader to Min et al (1998) and Nagy and Salhi (2007) for an extensive literature review.…”

Section: Location Planningmentioning

confidence: 99%

Towards an IT-based Planning Process Alignment: Integrated Route and Location Planning for Small Package Shippers

Stenger

Schneider

Wendt

2011

Theory-Guided Modeling and Empiricism in Information Systems Research

View full text Add to dashboard Cite

To increase the efficiency of delivery operations in small package shipping (SPS), numerous optimization models for route and location planning decisions have been proposed. This "operations research view" of defining independent problems has two major shortcomings: First, most models from literature neglect crucial real-world characteristics, thus making them useless for small package shippers. Second, business processes for strategic decision making are not well-structured in most SPS companies and significant cost savings could be generated by an IT-based support infrastructure integrating decision making and planning across the mutually dependent layers of strategic, tactical and operational planning. We present an integrated planning framework that combines an intelligent data analysis tool, which identifies delivery patterns and changes in customer demand, with location and route planning tools. Our planning approaches extend standard Location Routing and Vehicle Routing models by crucial, practically relevant characteristics like the existence of subcontractors on both decision levels and the implicit consideration of driver familiarity in route planning.

show abstract

“…A complete synthesis and survey of the LRP was accomplished earlier by Min et al (1998) who propose a classification scheme for LRPs. The authors argue that sequential methods consisting of decomposition for the LRP have their limitation.…”

Section: Zeynep öZyurt and Deniz Aksenmentioning

confidence: 99%

Solving the Multi-Depot Location-Routing Problem with Lagrangian Relaxation

Özyurt

Aksen

Operations Research/Computer Science Interfaces Series

View full text Add to dashboard Cite

Abstract:Multi-depot Location-Routing Problem (MDLRP) is about finding the optimal number and locations of depots while allocating customers to depots and determining vehicle routes to visit all customers. In this study we propose a nested Lagrangian relaxation-based method for the discrete uncapacitated MDLRP. An outer Lagrangian relaxation embedded in subgradient optimization decomposes the parent problem into two subproblems. The first subproblem is a facility location-like problem. It is solved to optimality with Cplex 9.0. The second one resembles a capacitated and degree constrained minimum spanning forest problem, which is tackled with an augmented Lagrangian relaxation. The solution of the first subproblem reveals a depot location plan. As soon as a new distinct location plan is found in the course of the subgradient iterations, a tabu search algorithm is triggered to solve the multi-depot vehicle routing problem associated with that plan, and a feasible solution to the parent problem is obtained. Its objective value is checked against the current upper bound on the parent problem's true optimal objective value. The performance of the proposed method has been observed on a number of test problems, and the results have been tabulated.

show abstract

Combined location-routing problems: A synthesis and future research directions

Cited by 408 publications

References 61 publications

Item-Location Assignment to Responsiveness for Fulfilling Rush Demands in a Manufacturing Network

Item-Location Assignment to Responsiveness for Fulfilling Rush Demands in a Manufacturing Network

Towards an IT-based Planning Process Alignment: Integrated Route and Location Planning for Small Package Shippers

Solving the Multi-Depot Location-Routing Problem with Lagrangian Relaxation

Contact Info

Product

Resources

About