A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

Ali H. Diabat · Jean‐Philippe P. Richard · Craig W. Codrington

91 citations0/0 files storedAnnals of Operations Research

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Supply Chain and Inventory Management Sustainable Supply Chain Management Facility Location and Emergency Management

Abstract

We study a multi-echelon joint inventory-location model that simultaneously determines the location of warehouses and inventory policies at the warehouses and retailers. The model is formulated as a nonlinear mixed-integer program, and is solved using a Lagrangian relaxation-based approach. The efficiency of the algorithm and benefits of integration are evaluated through a computational study.

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1999Inventory management and production planning and scheduling 2000Supply Chain Management: Strategy, Planning and Operations 2018Journal of Business Logistics 2003A framework for supply chain performance measurement 2001Performance measures and metrics in a supply chain environment 1989Integrating the Supply Chain 1960Optimal Policies for a Multi-Echelon Inventory Problem 2004Optimal Policies for a Multi-Echelon Inventory Problem

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2015A reverse logistics network design 2014An integrated supply chain problem with environmental considerations 2014An improved Lagrangian relaxation-based heuristic for a joint location-inventory problem 2018A location-inventory supply chain network model using two heuristic algorithms for perishable products with fuzzy constraints 2013A closed-loop location-inventory problem with spare parts consideration 2017Incorporating location and inventory decisions into a supply chain design problem with uncertain demands and lead times

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