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A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design |
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| Authors: | Ali Diabat Jean-Philippe Richard Craig W Codrington |
| Institution: | 1. Engineering Systems and Management, Masdar Institute of Science and Technology, P.O. Box 54224, Abu Dhabi, United Arab Emirates 2. Industrial and Systems Engineering, University of Florida, Gainesville, FL, 32611-6595, USA 3. Masdar Institute of Science and Technology, P.O. Box 54224, Abu Dhabi, United Arab Emirates |
| 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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