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Incorporating Three Echelon Location, Routing and Inventory Decisions in Supply Chain Network Design with Heterogeneous Vehicle

Shakeri, Mohammad Hesam | 2013

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 44916 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Shadrokh, Shahram
  7. Abstract:
  8. A key driver of the overall productivity and profitability of a supply chain is its distribution network which can be used to achieve a variety of the supply chain objectives ranging from low cost to high responsiveness. Designing a distribution network consists of three subproblems: location–allocation problem, vehicle routing problem, and inventory control problem. Because of high dependency among these problems, in the literature there are several papers integrating two of the above problems: location–routing problems, inventory–routing problems, and location–inventory problems.
    The three echelon location routing inventori problem (LRIP) is raised by the design of transportation networks with two types of trips: first-level trips serving from one main depot a set of satellite depots, to be located, and second-level trips supplying customers from these satellites.
    We present a model which simultaneously optimizes location, allocation, capacity, inventory and routing decisions without any approximation. To solve the problem, first we present an optimal solution method by expressing the problem as a mixed integer convex program. Since location–routing problems have been shown to be NP-hard, our problem belongs to the class of NP-hard problems too. Hence, we establish a heuristic method based Simulated Annealing. The results show that the proposed heuristic is considerably efficient and effective for a broad range of problem sizes
  9. Keywords:
  10. Three-Stage Supply Chain ; Location ; Routing ; Inventories ; Heterogeneous Vehicles

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