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: | Lee Young Hoon, Kang Kyung Hwan, Lee Byung Ki |
Keywords: | heuristics: tabu search, programming: integer |
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.