Article ID: | iaor20131294 |
Volume: | 50 |
Issue: | 5-6 |
Start Page Number: | 138 |
End Page Number: | 148 |
Publication Date: | Feb 2013 |
Journal: | Transportation Research Part E |
Authors: | Savachkin Alex, Li Qingwei |
Keywords: | location, heuristics, supply & supply chains |
Lean distribution networks have been increasingly exposed to the risk of
unpredicted disruptions causing significant economic forfeitures. At the same
time, the existing literature features a limited number of studies which
consider fortification of facilities for improving network reliability. In this
paper, we develop a reliable uncapacitated fixed‐charge location model
with fortification to support the design of distribution networks. The model
considers heterogeneous facility failure probabilities, one layer of supplier
backup, and facility fortification within a finite budget. The problem is
formulated as a nonlinear mixed integer programming model which is proved to be