American Institute of Mathematical Sciences

Advanced
July  2006, 2(3): 339-349. doi: 10.3934/jimo.2006.2.339

Designing the distribution network for an integrated supply chain

Jia Shu 1, and  Jie Sun 2,

1. 

Industrial and Manufacturing Engineering Department, Wayne State University, United States
2. 

Department of Decision Sciences and Singapore-MIT Alliance, National University of Singapore

Received  January 2006 Revised  May 2006 Published  July 2006

We consider an integrated distribution network design problem in which all the retailers face uncertain demand. The risk-pooling benefit is achieved by allowing some of the retailers to operate as distribution centers (DCs) with commitment in service level. The target is to minimize the expected total cost resulted from the DC location, transportation, and inventory. We formulate it as a two-stage nonlinear discrete stochastic optimization problem. The first stage decides which retailers to be selected as DCs and the second stage deals with the costs of DC-retailer assignment, transportation, and inventory. In the literature, the similar models require the demands of all retailers in each scenario to have their variances identically proportional to their means. In this paper, we remove this restriction. We reformulate the problem as a set-covering model and solve it by a column generation approach. With a variable fixing technique, we are able to efficiently solve problems of moderate-size (up to one hundred retailers and nine scenarios).
Keywords: supply chain design., set covering, Column generation.
Mathematics Subject Classification: 90B80, 90C1.
Citation: Jia Shu, Jie Sun. Designing the distribution network for an integrated supply chain. Journal of Industrial & Management Optimization, 2006, 2 (3) : 339-349. doi: 10.3934/jimo.2006.2.339
[1]

Feimin Zhong, Wei Zeng, Zhongbao Zhou. Mechanism design in a supply chain with ambiguity in private information. Journal of Industrial & Management Optimization, 2020, 16 (1) : 261-287. doi: 10.3934/jimo.2018151
[2]

Ashkan Mohsenzadeh Ledari, Alireza Arshadi Khamseh, Mohammad Mohammadi. A three echelon revenue oriented green supply chain network design. Numerical Algebra, Control & Optimization, 2018, 8 (2) : 157-168. doi: 10.3934/naco.2018009
[3]

Zuo-Jun max Shen. Integrated supply chain design models: a survey and future research directions. Journal of Industrial & Management Optimization, 2007, 3 (1) : 1-27. doi: 10.3934/jimo.2007.3.1
[4]

Xia Zhao, Jianping Dou. Bi-objective integrated supply chain design with transportation choices: A multi-objective particle swarm optimization. Journal of Industrial & Management Optimization, 2019, 15 (3) : 1263-1288. doi: 10.3934/jimo.2018095
[5]

Azam Moradi, Jafar Razmi, Reza Babazadeh, Ali Sabbaghnia. An integrated Principal Component Analysis and multi-objective mathematical programming approach to agile supply chain network design under uncertainty. Journal of Industrial & Management Optimization, 2019, 15 (2) : 855-879. doi: 10.3934/jimo.2018074
[6]

Belma Yelbay, Ş. İlker Birbil, Kerem Bülbül. The set covering problem revisited: An empirical study of the value of dual information. Journal of Industrial & Management Optimization, 2015, 11 (2) : 575-594. doi: 10.3934/jimo.2015.11.575
[7]

Juliang Zhang, Jian Chen. Information sharing in a make-to-stock supply chain. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1169-1189. doi: 10.3934/jimo.2014.10.1169
[8]

Yeong-Cheng Liou, Siegfried Schaible, Jen-Chih Yao. Supply chain inventory management via a Stackelberg equilibrium. Journal of Industrial & Management Optimization, 2006, 2 (1) : 81-94. doi: 10.3934/jimo.2006.2.81
[9]

Juliang Zhang. Coordination of supply chain with buyer's promotion. Journal of Industrial & Management Optimization, 2007, 3 (4) : 715-726. doi: 10.3934/jimo.2007.3.715
[10]

Na Song, Ximin Huang, Yue Xie, Wai-Ki Ching, Tak-Kuen Siu. Impact of reorder option in supply chain coordination. Journal of Industrial & Management Optimization, 2017, 13 (1) : 449-475. doi: 10.3934/jimo.2016026
[11]

Liping Zhang. A nonlinear complementarity model for supply chain network equilibrium. Journal of Industrial & Management Optimization, 2007, 3 (4) : 727-737. doi: 10.3934/jimo.2007.3.727
[12]

Joseph Geunes, Panos M. Pardalos. Introduction to the Special Issue on Supply Chain Optimization. Journal of Industrial & Management Optimization, 2007, 3 (1) : i-ii. doi: 10.3934/jimo.2007.3.1i
[13]

Jun Pei, Panos M. Pardalos, Xinbao Liu, Wenjuan Fan, Shanlin Yang, Ling Wang. Coordination of production and transportation in supply chain scheduling. Journal of Industrial & Management Optimization, 2015, 11 (2) : 399-419. doi: 10.3934/jimo.2015.11.399
[14]

Jingming Pan, Wenqing Shi, Xiaowo Tang. Pricing and ordering strategies of supply chain with selling gift cards. Journal of Industrial & Management Optimization, 2018, 14 (1) : 349-369. doi: 10.3934/jimo.2017050
[15]

Nina Yan, Baowen Sun. Comparative analysis of supply chain financing strategies between different financing modes. Journal of Industrial & Management Optimization, 2015, 11 (4) : 1073-1087. doi: 10.3934/jimo.2015.11.1073
[16]

Mitali Sarkar, Young Hae Lee. Optimum pricing strategy for complementary products with reservation price in a supply chain model. Journal of Industrial & Management Optimization, 2017, 13 (3) : 1553-1586. doi: 10.3934/jimo.2017007
[17]

Gang Xie, Wuyi Yue, Shouyang Wang. Optimal selection of cleaner products in a green supply chain with risk aversion. Journal of Industrial & Management Optimization, 2015, 11 (2) : 515-528. doi: 10.3934/jimo.2015.11.515
[18]

K.H. Wong, Chi Kin Chan, H. W.J. Lee. Optimal feedback production for a single-echelon supply chain. Discrete & Continuous Dynamical Systems - B, 2006, 6 (6) : 1431-1444. doi: 10.3934/dcdsb.2006.6.1431
[19]

Fei Cheng, Shanlin Yang, Ram Akella, Xiaoting Tang. An integrated approach for selection of service vendors in service supply chain. Journal of Industrial & Management Optimization, 2011, 7 (4) : 907-925. doi: 10.3934/jimo.2011.7.907
[20]

Sanjoy Kumar Paul, Ruhul Sarker, Daryl Essam. Managing risk and disruption in production-inventory and supply chain systems: A review. Journal of Industrial & Management Optimization, 2016, 12 (3) : 1009-1029. doi: 10.3934/jimo.2016.12.1009

2018 Impact Factor: 1.025

Tools

Metrics

  • PDF downloads (15)
  • HTML views (0)
  • Cited by (10)

Other articles
by authors

[Back to Top]

Copyright © 2019 American Institute of Mathematical Sciences