A Lagrangian relaxation approach for stochastic distribution network design

Guy Aime Tanonkou 1 Lyes Benyoucef 1 Xiaolan Xie 1
1 MACSI - Industrial system modeling, analysis and operation
INRIA Lorraine, LORIA - Laboratoire Lorrain de Recherche en Informatique et ses Applications
Abstract : This paper addresses the design of a distribution network in which a single supplier ships products to a set of retailers facing random demands via a set of distribution centers. Distribution centers are not known a priori and are to be located at a set of retailer locations. Decisions include: retailer locations to be selected as distribution centers, assignment of retailers to the distribution centers, and inventory to keep at each distribution center. The goal is to minimize the total location, shipment, and inventory costs, while ensuring a given retailer service level. A Lagrangian relaxation heuristic is proposed. Computation results show the effectiveness of the proposed heuristic and the duality gap is less than 1.5% in all tested problem instances.
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Rapport
[Research Report] RR-5970, INRIA. 2006, pp.16
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https://hal.inria.fr/inria-00089616
Contributeur : Rapport de Recherche Inria <>
Soumis le : mercredi 6 septembre 2006 - 10:27:12
Dernière modification le : jeudi 11 janvier 2018 - 06:19:48
Document(s) archivé(s) le : vendredi 25 novembre 2016 - 11:24:02

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Guy Aime Tanonkou, Lyes Benyoucef, Xiaolan Xie. A Lagrangian relaxation approach for stochastic distribution network design. [Research Report] RR-5970, INRIA. 2006, pp.16. 〈inria-00089616v2〉

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