A continuous model for production–distribution system design

A continuous model for production–distribution system design

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Article ID: iaor20013834
Country: Netherlands
Volume: 129
Issue: 2
Start Page Number: 277
End Page Number: 298
Publication Date: Mar 2001
Journal: European Journal of Operational Research
Authors: ,
Keywords: location, programming: integer
Abstract:

The production–distribution system design problem involves decisions concerning the structure of a firm's supply chain. An overwhelming majority of the literature uses mixed integer programming formulations in representing such facility design decisions. In this paper, we present an alternative modeling framework, which is based on the use of continuous functions to represent spatial distributions of cost and customer demand. The proposed continuous model allows the derivation of a number of insights about the impact of problem parameters on facility design decisions. It is proposed that discrete and continuous modeling approaches complement each other.

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