| Article ID: | iaor20131897 |
| Volume: | 203 |
| Issue: | 1 |
| Start Page Number: | 55 |
| End Page Number: | 80 |
| Publication Date: | Mar 2013 |
| Journal: | Annals of Operations Research |
| Authors: | Diabat Ali, Richard Jean-Philippe, Codrington Craig |
| Keywords: | inventory, location, combinatorial optimization |
We study a multi‐echelon joint inventory‐location model that simultaneously determines the location of warehouses and inventory policies at the warehouses and retailers. The model is formulated as a nonlinear mixed‐integer program, and is solved using a Lagrangian relaxation‐based approach. The efficiency of the algorithm and benefits of integration are evaluated through a computational study.