Development of a new approach for deterministic supply chain network design

This paper proposes a mixed integer linear programming model and solution algorithm for solving supply chain network design problems in deterministic, multi-commodity, single-period contexts. The strategic level of supply chain planning and tactical level planning of supply chain are aggregated to p...

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Vydáno v:European journal of operational research Ročník 198; číslo 1; s. 121 - 128
Hlavní autoři: Mohammadi Bidhandi, Hadi, Mohd. Yusuff, Rosnah, Megat Ahmad, Megat Mohamad Hamdan, Abu Bakar, Mohd Rizam
Médium: Journal Article
Jazyk:angličtina
Vydáno: Amsterdam Elsevier B.V 01.10.2009
Elsevier
Elsevier Sequoia S.A
Edice:European Journal of Operational Research
Témata:
Applied sciences
Benders’ decomposition
Combinatorial optimization
Decision making models
Decision theory. Utility theory
Exact sciences and technology
Facilities planning and design
Facilities planning and design Supply chain network design Combinatorial optimization Mixed integer linear programming Benders' decomposition Surrogate constraints
Flows in networks. Combinatorial problems
Integer programming
Linear programming
Logistics
Mathematical programming
Mixed integer linear programming
Operational research and scientific management
Operational research. Management science
Optimization algorithms
Studies
Supply chain management
Supply chain network design
Supply chains
Surrogate constraints
Benders’ decomposition
Supply chain network design
Facilities planning and design
Mixed integer linear programming
Combinatorial optimization
Surrogate constraints
Partition method
Decision making
Linear programming
Mixed integer programming
Benders' decomposition
Modeling
Location problem
Linear model
Zero one programming
Substitution
Warehousing
Inequality constraint
NP hard problem
Relaxation method
Supplier
Metric
Plant layout
Planning
Logistics
ISSN:0377-2217, 1872-6860
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Popis
Shrnutí:This paper proposes a mixed integer linear programming model and solution algorithm for solving supply chain network design problems in deterministic, multi-commodity, single-period contexts. The strategic level of supply chain planning and tactical level planning of supply chain are aggregated to propose an integrated model. The model integrates location and capacity choices for suppliers, plants and warehouses selection, product range assignment and production flows. The open-or-close decisions for the facilities are binary decision variables and the production and transportation flow decisions are continuous decision variables. Consequently, this problem is a binary mixed integer linear programming problem. In this paper, a modified version of Benders’ decomposition is proposed to solve the model. The most difficulty associated with the Benders’ decomposition is the solution of master problem, as in many real-life problems the model will be NP-hard and very time consuming. In the proposed procedure, the master problem will be developed using the surrogate constraints. We show that the main constraints of the master problem can be replaced by the strongest surrogate constraint. The generated problem with the strongest surrogate constraint is a valid relaxation of the main problem. Furthermore, a near-optimal initial solution is generated for a reduction in the number of iterations.
Bibliografie:SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 14
ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2008.07.034