A two-stage stochastic optimization model for warehouse configuration and inventory policy of deteriorating items

作者：Lin Yu Siang^*; Wang Kung Jeng

来源：Computers & Industrial Engineering, 2018, 120: 83-93.

DOI：10.1016/j.cie.2018.04.008

• Warehouse configuration
• Inventory control
• Stochastic demands
• Deteriorating items

The optimal decision of global warehouse/hub deployment is critical to firm profitability. This study resolves the problems of deciding the optimal warehouse location for multiple markets and determining warehouse configuration design against stochastic demands. An appropriate inventory policy with owned and rented warehouses for deteriorating items is further designed. The proposed model maximizes the profit under rent warehouse incentives decreasing over time and price-sensitive demands. Furthermore, we propose a solution algorithm to solve the problem effectively. Sensitivity analysis is conducted to examine the effects of the parameters for the model of the algorithm.

• 出版日期2018-6