An Efficient Greedy Heuristic for Warehouse-Retailer Network Design Optimization

Jia Shu

67 citations0/0 files storedTransportation Science

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Supply Chain and Inventory Management Logistics and Transportation Systems Facility Location and Emergency Management

Abstract

In this paper, we study a warehouse-retailer network design (WRND) model that simultaneously makes the location, distribution, and warehouse-retailer echelon inventory replenishment decisions. Although a column generation algorithm was proposed recently in the literature, it remains a challenge to solve large size instances of this NP-hard problem efficiently and effectively. The purpose of this paper is to present a greedy algorithm. Computational results demonstrate that our greedy algorithm can solve large-scale WRND problems efficiently with errors within 3%–4% on average.

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References

1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 2008Facility location and supply chain management – A review 1991Discrete location theory 1976A Heuristic Program for Locating Warehouses 2003A Joint Location-Inventory Model 1963A Heuristic Program for Locating Warehouses 2002An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results

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