Integrated warehouse location and inventory decisions in a three-tier distribution system

Üster, Halit; Keskin, Burcu B.; Çetinkaya, Sıla

doi:10.1080/07408170701598132

Cited by 41 publications

(19 citation statements)

References 33 publications

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“…Our work also generalizes the study by Üster et al [48] that considers a three-stage integrated location-inventory model, with existing retailers at the first stage and a single supplier at the third stage. They develop efficient algorithms to determine the location of a single DC (specifically, the coordinates of the DC in a continuous location setting) serving retailers and inventory decisions under a power-of-two policy for the warehouse and retailers simultaneously.…”

Section: Introductionmentioning

confidence: 65%

“…Hence, our article contributes to the second area of integrated location inventory literature by considering joint optimization of facility location and inventory decisions. The limited existing research in this area by Romeijn et al [32], Teo and Shu [45], Üster et al [48], and Shu [38] is closely related to our research problems. Considering the discrete facility location problem setting, Teo and Shu [45] study a two-stage, warehouse-retailer network design problem that incorporates transportation and inventory cost functions under deterministic stationary demand over an infinite planning horizon.…”

Section: Literature Reviewmentioning

confidence: 79%

“…This work generalizes two closely related studies in the integrated location-inventory literature by Teo and Shu [45] and Üster et al [48]. Both of these papers include joint location-inventory models where the inventory control at both the DCs and retailers was investigated.…”

Section: Introductionmentioning

confidence: 81%

“…On the other hand, as mentioned earlier, Üster et al [48] consider a continuous facility location problem in a threestage setting. They locate the warehouse, given the locations of the supplier and existing retailers, and determine the inventory policy parameters of the warehouse and the retailers simultaneously.…”

Section: Literature Reviewmentioning

confidence: 98%

“…For a detailed discussion of power-of-two policies and a single warehouse, multiretailer system, we refer the readers to [33], [40], and [48].…”

Section: Jmentioning

confidence: 99%

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Production/distribution system design with inventory considerations

Keskin

Üster

2012

Naval Research Logistics

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This study addresses the design of a three-stage production/distribution system where the first stage includes the set of established retailers and the second and third stages include the sets of potential distribution centers (DCs) and potential capacitated suppliers, respectively. In this problem, in addition to the fixed location/operating costs associated with locating DCs and suppliers, we consider the coordinated inventory replenishment decisions at the located DCs and retailers along with the appropriate inventory costs explicitly. In particular, we account for the replenishment and holding costs at the retailers and selected DCs, and the fixed plus distance-based transportation costs between the selected plants and their assigned DCs, and between the selected DCs and their respective retailers, explicitly. The resulting formulation is a challenging mixed-integer nonlinear programming model for which we propose efficient heuristic solution approaches. Our computational results demonstrate the performance of the heuristic approaches as well as the value of integrated decision-making by verifying that significant cost savings are realizable when the inventory decisions and costs are incorporated in the production distribution system design.

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Section: Introductionmentioning

confidence: 65%

Section: Literature Reviewmentioning

confidence: 79%

Section: Introductionmentioning

confidence: 81%

Section: Literature Reviewmentioning

confidence: 98%

“…For a detailed discussion of power-of-two policies and a single warehouse, multiretailer system, we refer the readers to [33], [40], and [48].…”

Section: Jmentioning

confidence: 99%

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Production/distribution system design with inventory considerations

Keskin

Üster

2012

Naval Research Logistics

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Coordination of Production and Delivery in Supply Chain Scheduling

Chen

2011

Wiley Encyclopedia of Operations Research and Management Science

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In many supply chains for make‐to‐order or time‐sensitive products, finished orders are often delivered to customers immediately or shortly after production. Consequently, there is little or no finished product inventory, and production and finished product delivery must be scheduled in a coordinated way in order to achieve a desired level of delivery performance at minimum total cost. Research on coordinated production and delivery scheduling models is relatively recent, but is growing rapidly due to an increasing number of applications in practice. In this article, major application examples that can be modeled as a coordinated production and delivery scheduling problem are reviewed, an overview of existing coordinated production and delivery scheduling models is given, and solution techniques that have been studied in the literature are discussed along with several directions for future research.

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The Utility of EOQ in Supply Chain Design and Operation

Keskin

Çapar

2013

International Series in Operations Research &Amp; Management Science

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Supply chain design and operation problems are complicated in many fronts due to intervened decision making. One of the main complications is related to inventory decisions and costs. In many cases, considering inventory in the overall supply chain domain introduces stochastic and nonlinear formulations. Ignoring inventories, as in the traditional approach, results in inferior supply chain designs and operations in terms of cost performance. Economic order quantity (EOQ) models, with their simplicity, intuitive explanation, and clear implementation, aid in the resolution of these issues in a number of integrated supply chain problem contexts. In this chapter, we summarize the role and utility of EOQ models in these integrated supply chain design and operation problems. Specifically, we consider the three pillars of supply chain management: location, transportation, and inventory. We discuss how EOQ models ease the analysis of integrated supply chain models under each pillar in detail including inventorylocation models, inventory-routing models, and multi-echelon inventory models.

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Integrated warehouse location and inventory decisions in a three-tier distribution system

Cited by 41 publications

References 33 publications

Production/distribution system design with inventory considerations

Production/distribution system design with inventory considerations

Coordination of Production and Delivery in Supply Chain Scheduling

The Utility of EOQ in Supply Chain Design and Operation

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