Article ID: | iaor200937803 |
Country: | Germany |
Volume: | 166 |
Issue: | 1 |
Start Page Number: | 223 |
End Page Number: | 242 |
Publication Date: | Feb 2009 |
Journal: | Annals of Operations Research |
Authors: | AlonsoAyuso A, Escudero L F, Pizarro C |
Keywords: | inventory |
We present an algorithmic framework for solving the strategic problem of assigning retailers to facilities in a multi-period single-sourcing product environment under uncertainty in the demand from the retailers and the costs of production, inventory holding, backlogging and distribution of the product. The functional to minimize is included by the expected objective function and the excess probability functional. By considering a splitting variable mathematical representation of the Deterministic Equivalent Model, we introduce several so-called Fix-and-Relax procedures that exploit the excess probability functional structure in addition to the structure of the special ordered sets related to the non-anticipativity constraints for the assignment variables. Some computational experience is reported.