Decomposition heuristic to minimize total cost in a multi-level supply chain network

Decomposition heuristic to minimize total cost in a multi-level supply chain network

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Article ID: iaor20091034
Country: Netherlands
Volume: 54
Issue: 4
Start Page Number: 945
End Page Number: 959
Publication Date: May 2008
Journal: Computers & Industrial Engineering
Authors: , ,
Keywords: heuristics: tabu search, programming: integer
Abstract:

In this paper, the distribution planning model for the multi-level supply chain network is studied. Products which are manufactured at factory are delivered to customers through warehouses and distribution centers for the given customer demands. The objective function of suggested model is to minimize logistic costs such as replenishment cost, inventory holding cost and transportation cost. A mixed integer programming formulation and heuristics for practical use are suggested. Heuristics are composed of two steps: decomposition and post improving process.

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