Dynamic supply chain design with inventory

Y. Hinojosa*, Joerg Kalcsics, S. Nickel, J. Puerto, S. Velten

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

In this paper, we deal with a facility location problem where we build new facilities or close down already existing facilities at two different distribution levels over a given time horizon. In addition, we allow to carry over stock in warehouses between consecutive periods. Our model intends to minimize the total costs, including transportation and inventory holding costs for products as well as fixed and operating costs for facilities. After formulating the problem, we propose a Lagrangian approach which relaxes the constraints connecting the distribution levels. A procedure is developed to solve the resulting, independent subproblems and, based on this solution, to construct a feasible solution for the original problem.

Original languageEnglish
Pages (from-to)373-391
Number of pages19
JournalComputers and Operations Research
Issue number2
Publication statusPublished - Feb 2008

Keywords / Materials (for Non-textual outputs)

  • Dynamic multi-echelon facility-location
  • Heuristic
  • Integer programming
  • Inventory
  • Lagrangian dual


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