Computationally Efficient Solution of a Multiproduct, Two-Stage Distribution–Location Problem

Hindi, K S; Basta, Tayeb

doi:10.1038/sj/jors/0451109

Cited by 6 publications

(4 citation statements)

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“…This characteristic deals with the multiple numbers of class for the product or service considered. The literature on LRP has been commonly dealing with the case of a single type of commodity or service, though numerous articles have also been considering the more realistic case of multiple commodities or services, which was first discussed by Hindi and Basta (1994).…”

Section: Product or Servicementioning

confidence: 99%

Location‐routing problem: a classification of recent research

Mara

Kuo

Asih

2021

Int Trans Operational Res

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The location-routing problem (LRP) and its variants have been studied extensively over the past few years. The number of articles has grown more than ever, since the last surveys. Therefore, this study aims to perform a review of recent LRP research from 222 academic literature published from 2014 to 2019. The analysis of publication intensity, problem characteristics, solution methods, and application areas was executed to draw the state-of-the-art of LRP research. As the main contributions to this study, a new taxonomy was proposed to capture some recently emerging issues in LRP and some suggestions for future research were listed and discussed.

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Section: Product or Servicementioning

confidence: 99%

Location‐routing problem: a classification of recent research

Mara

Kuo

Asih

2021

Int Trans Operational Res

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“…However, not much work has been done on the two-layer warehouse location models (Hindi and Basta 1994). One of the classical papers in solving locations problems is Geoffrion and Graves (1974), which solves the distribution system design problem using Benders decomposition.…”

Section: Capacitated Location Modelsmentioning

confidence: 99%

A nested partitions framework for solving large-scale multicommodity facility location problems

Shi¹,

Meyer²,

Bozbay³

et al. 2004

J. Syst. Sci. Syst. Eng.

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Large-scale multicommodity facility location problems are generally intractable with respect to standard mixed-integer programming (MIP) tools such as the direct application of general-purpose Branch & Cut (BC) commercial solvers i.e. CPLEX. In this paper, the authors investigate a nested partitions (NP) framework that combines meta-heuristics with MIP tools (including branch-and-cut). We also consider a variety of alternative formulations and decomposition methods for this problem class. Our results show that our NP framework is capable of efficiently producing very high quality solutions to multicommodity facility location problems. For large-scale problems in this class, this approach is significantly faster and generates better feasible solutions than either CPLEX (applied directly to the given MIP) or the iterative Lagrangian-based methods that have generally been regarded as the most effective structure-based techniques for optimization of these problems. We also briefly discuss some other large-scale MIP problem classes for which this approach is expected to be very effective.

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“…Review of facility location is given by Owen and Daskin (1998). Nozick and Turnquist (1998) include inventory costs in a fixed-charge facility location model, while Hindi and Basta (1994) treat two-stage multi-commodity distribution. Pirkul and Jayaraman (1998) and Klose (1999) develop heuristics based on Lagrangian relaxation.…”

Section: Scope and Problem Definitionmentioning

confidence: 99%

Cross‐docking and Its Implications in Location‐distribution Systems

Gümüş

Bookbinder

2004

J of Business Logistics

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The desire to decrease logistics costs has led organizations to investigate more profitable approaches to supply chain management. Three proven, yet not fully integrated, supply chain levers are distribution network optimization, shipment consolidation, and cross-docking (Brockmann 1999). The first, with the largest literature, finds the number and best locations for facilities. The second may be overlooked, but shipment consolidation gives a proven payback whereby less than truck-load (LTL) shipments are combined into truck-load (TL) moves ( Figure 1). Shipment consolidation enabled Nabisco Inc. to cut transportation costs in half, reduce inventory levels, and improve on-time delivery (Quinn 1997). GÜMÜS ' AND BOOKBINDERLocation: Number of cross-docks to be opened; i.e. from a given set of feasible locations, which one(s) will be chosen?Transportation: Number of trucks used for direct shipments or those via cross-dock.Consolidation and cross-docking decisions: Which products, consolidated where, and to what extent?Managing such activities in a supply chain composed of many partners is not easy. We assume that coordination will be carried out by a third-party logistics provider (3PL) which owns or leases the cross-docking facilities and arranges common-carrier transportation, obtaining additional vehicles when necessary.Our first model treats a single manufacturer, producing one product, serving multiple retailers. Since cross-dock handling costs (selecting, repacking, dispatching) depend on product type, the extension to several product variations also improves decisions such as, "Ship direct or through a cross-dock?" We then consider I manufacturers and K retailers (I, K ≥ 2), based upon the notation in our fourth section and the general formulation in Appendix A. Following a survey of the literature, we will study the cost functions for location-distribution models, justifying those we employ. FIGURE 2 MANUFACTURER-RETAILER NETWORK

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Computationally Efficient Solution of a Multiproduct, Two-Stage Distribution–Location Problem

Cited by 6 publications

References 0 publications

Location‐routing problem: a classification of recent research

Location‐routing problem: a classification of recent research

A nested partitions framework for solving large-scale multicommodity facility location problems

Cross‐docking and Its Implications in Location‐distribution Systems

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