Title :
An integrated multi-depot location- inventory-routing problem for logistics distribution system planning of a chain enterprise
Author_Institution :
Res. Center of Cluster & Enterprise Dev., Jiangxi Finance & Econ. Univ., Nanchang, China
Abstract :
We consider an integrated location-inventory-routing problem where the decision marker needs to realize the integrated decisions of facility location, inventory control, and vehicle routing for a logistics distribution system owned to a chain enterprise. This distribution system consists of a center warehouse, multiple potential distribution centers (DCs) and multiple retail stores. Retailer stores in the system face random demand, and receive distribution service from DCs in the same distribution period. The objective is to minimize the total system operation cost that includes facility location cost, inventory cost and transportation cost. We show that this problem can be formulated as a nonlinear mixed integrated programming model, for which we proposed a nested lagrangian relaxation-based solution algorithm. An outer Lagrangian relaxation embedded in subgradient optimization decompose the parent problem into two sub-problems. The first sub-problem is a distribution network design with risk pooling effect problem, along with a solution approach based on Lagrangian relaxation. The second one resembles a capacitated and degree constrained minimum spanning forest problem, which is tackled with an augmented lagrangian relation. We present computational results for several instances of the problem with sizes ranging from 50 to 150 stores. The results indicate that this method performs well in terms of the solution quality and run time consumed.
Keywords :
facility location; goods distribution; nonlinear programming; relaxation theory; stock control; transportation; augmented Lagrangian relation; center warehouse; chain enterprise; distribution network design; distribution service; facility location; integrated decisions; integrated location-inventory-routing problem; integrated multidepot location-inventory-routing problem; inventory control; logistics distribution system planning; minimum spanning forest problem; multiple potential distribution centers; multiple retail stores; nested Lagrangian relaxation; nonlinear mixed integrated programming model; outer Lagrangian relaxation; risk pooling effect problem; subgradient optimization; vehicle routing; Costs; Distributed control; Financial management; Inventory control; Inventory management; Lagrangian functions; Logistics; Routing; Stochastic processes; Vehicles; Chain Enterprise; Location-Inventory-Routing; Logistics Distribution System; Multi-depot;
Conference_Titel :
Logistics Systems and Intelligent Management, 2010 International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-1-4244-7331-1
DOI :
10.1109/ICLSIM.2010.5461202