Distribution Centers Reliability Cost in Capacitated Facility Location Problem

Authors: Mehdi Seifbarghy, Sajjad Jalali, Seyed Habib A. Rahmati

Abstract:

Recently studies in area of supply chain network (SCN) have focused on the disruption issues in distribution systems. Also this paper extends the previous literature by providing a new biobjective model for cost minimization of designing a three echelon SCN across normal and failure scenarios with considering multi capacity option for manufacturers and distribution centers. Moreover, in order to solve the problem by means of LINGO software, novel model will be reformulated through a branch of LP-Metric method called Min-Max approach.

Keywords: Scenario programming, Distribution, Multi-echelon supply chain design, Reliable facility

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1057423

References:

[1] Amiri, "Designing a distribution network in a supply chain system: Formulation and efficient solution procedure--, European Journal of Operational Research 171 (2006) 567-576.
[2] H. Pirkul, V. Jayaraman, "A multi-commodity, multi-plant, capacitated facility location problem: Formulation and efficient heuristic solution", Computers and Operations Research 25 (1998) 869-878.
[3] Snyder, L.V., Daskin, M.S., "Reliability models for facility location: the expected failure cost case", Transportation Science 39 (3), 400-416, 2005.
[4] Shen.Z, Zhan.L, Zhang.J, "The Reliable Facility Location Problem: Formulations, Heuristics and Approximation Algorithms", Informs on journal on computing (2010).
[5] Cohon, J. L. "Multi-criteria programming: Brief review and application" In J. S. Gero (Ed.), Design Optimization, New York: Academic Press, 1985.
[6] M. J. Asgharpour, "Multi-criteria decision making", (6th ed.), Iran: Tehran University Press, 2009.