A three-level supply chain network design model with risk-pooling and lead times

作者：Park Sukun; Lee Tae Eog^*; Sung Chang Sup

来源：Transportation Research Part E: Logistics and Transportation Review , 2010, 46(5): 563-581.

DOI：10.1016/j.tre.2009.12.004

• Location-inventory model
• Risk-pooling
• Lead time
• Lagrangian relaxation
• Supply chain management

This paper considers a single-sourcing network design problem for a three-level supply chain consisting of suppliers, distribution centers (DC's) and retailers, where risk-pooling strategy and DC-to-supplier dependent lead times are considered. The objective is to determine the number and locations of suppliers and DC's, the assignment of each location-fixed DC to a supplier and that of each retailer to a DC, which minimizes the system-wide location, transportation, and inventory costs. The problem is formulated as a nonlinear integer programming model, for which a two-phase heuristic solution algorithm is derived based on the Lagrangian relaxation approach. Numerical experiments show that the proposed heuristic is effective and also efficient.

• 出版日期2010-9