Design of Stochastic Distribution Networks Using Lagrangian Relaxation

This paper addresses the design of single commodity stochastic distribution networks. The distribution network under consideration consists of a single supplier serving a set of retailers through a set of distribution centers (DCs). The number and location of DCs are decision variables and they are chosen from the set of retailer locations. To manage inventory at DCs, the economic order quantity (EOQ) policy is used by each DC, and a safety stock level is kept to ensure a given retailer service level. Each retailer faces a random demand of a single commodity and the supply lead time from the supplier to each DC is random. The goal is to minimize the total location, shipment, and inventory costs,

• Type: Journal
• Year: 2008
• Where: TASE
• Authors: Guy-Aimé Tanonkou, Lyès Benyoucef, Xiaolan Xie
• Keywords: Distribution Network, Retailer, Single Commodity, Software Engineering, TASE 2008