On solving the multi-period single-sourcing problem under uncertainty

We present a framework for solving the strategic problem of assigning retailers to facilities in a multi-period single-sourcing product environment under uncertainty in the demand from the retailers and the cost of production, inventory holding, backlogging and distribution of the product. By considering a splitting variable mathematical representation of the Deterministic Equivalent Model, we specialize the so-called Branch-and-Fix Coordination algorithmic framework. It exploits the structure of the model and, specifically, the non-anticipativity constraints for the assignment variables. The algorithm uses the Twin Node Family (TNF) concept. Our procedure is specifically designed for coordinating the selection of the branching TNF and the branching S3 set, such that the non-anticipativity constraints are satisfied. Some computational experience is reported. D. Romero Morales: The work of this author was supported in part by the National Science Foundation under Grant No. DMI-0355533 The work of the first three authors has been partially supported by the grants TIC2003-05982-C05-05 and SEC2002-00112 from MCyT, Spain