Title :
Design of multi-commodity distribution network with random demands and supply lead-times
Author :
Tanonkou, Guy Aimé ; Benyoucef, Lyes ; Xie, Xiaolan
Author_Institution :
INRIA Lorriane, Metz
Abstract :
This paper deals with the stochastic multi-commodity distribution network design problem. The distribution network is composed of a single supplier serving a set of retailers through a set of distribution centers (DCs) to locate. Each retailer faces independent random demands of different commodities, the supply lead-time from the supplier to each DC is random. The central issues of the problem are: which retailer locations should be selected as DCs and commodity-by-commodity how to assign retailers to DCs. The goal is to minimize the total location, shipment, and inventory costs, while ensuring a specified retailer service level. A Lagrangian relaxation approach is proposed, and computational experiments presented and analyzed showing its effectiveness.
Keywords :
goods distribution; retailing; stochastic processes; supply and demand; Lagrangian relaxation approach; commodity-by-commodity; independent random demands; multicommodity distribution network; network distribution centers; retailer; supplier; supply lead-time; Cost function; Design automation; Design engineering; Distributed control; Economies of scale; Lagrangian functions; Production systems; Stochastic processes; Supply chains; USA Councils;
Conference_Titel :
Automation Science and Engineering, 2007. CASE 2007. IEEE International Conference on
Conference_Location :
Scottsdale, AZ
Print_ISBN :
978-1-4244-1154-2
Electronic_ISBN :
978-1-4244-1154-2
DOI :
10.1109/COASE.2007.4341800