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Journal Article Multi-Level Supply Chain Network Design with Routing
Cited 61 time in scopus Share share facebook twitter linkedin kakaostory
Authors
Jeong-Hun Lee, Il-Kyeong Moon, Jong-Heung Park
Issue Date
2010-01
Citation
International Journal of Production Research, v.48, no.13, pp.3957-3976
ISSN
0020-7543
Publisher
Taylor & Francis
Language
English
Type
Journal Article
DOI
https://dx.doi.org/10.1080/00207540902922851
Abstract
Recently, the multi-level and multi-facility industrial problem in supply chain management (SCM) has been widely investigated. One of the key issues, central to this problem in the current SCM research area is the interdependence among the location of facilities, the allocation of facilities, and the vehicle routing for the supply of raw materials and products. This paper studies the supply chain network design problem, which involves the location of facilities, allocation of facilities, and routing decisions. The proposed problem has some practical applications. For example, it is necessary for third party logistics (3PL) companies to manage the design of the network and to operate vehicle transportation. The purpose of this study is to determine the optimal location, allocation, and routing with minimum cost to the supply chain network. The study proposes two mixed integer programming models, one without routing and one with routing, and a heuristic algorithm based on LP-relaxation in order to solve the model with routing. The results show that a developed heuristic algorithm is able to find a good solution in a reasonable time. © 2010 Taylor & Francis.
KSP Keywords
Heuristic algorithm, Industrial problem, Key Issues, LP relaxation, Minimum cost, Mobile IP(MIP), Multi-level supply chain, Network Design Problem, Optimal location, Programming models, Raw Materials