Dynamic supply chain design with inventory

Dynamic supply chain design with inventory

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Article ID: iaor2009109
Country: United Kingdom
Volume: 35
Issue: 2
Start Page Number: 373
End Page Number: 391
Publication Date: Feb 2008
Journal: Computers and Operations Research
Authors: , , , ,
Keywords: supply & supply chains, inventory, programming: integer, heuristics
Abstract:

In this paper, we deal with a facility location problem where we build new facilities or close down already existing facilities at two different distribution levels over a given time horizon. In addition, we allow to carry over stock in warehouses between consecutive periods. Our model intends to minimize the total costs, including transportation and inventory holding costs for products as well as fixed and operating costs for facilities. A procedure is developed to solve the resulting, independent subproblems and, based on this solution, to construct a feasible solution for the original problem.

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