A Generalized Benders Decomposition based algorithm for an inventory location problem with stochastic inventory capacity constraints

Francisco J. Tapia-Ubeda, Pablo A. Miranda, Marco Macchi

Resultado de la investigación: Article

3 Citas (Scopus)

Resumen

This paper deals with an inventory location problem with order quantity and stochastic inventory capacity constraints, which aims to address strategic supply chain network design problems and is of a nonlinear, nonconvex mixed integer programming nature. The problem integrates strategic supply chain networks design decisions (i.e., warehouse location and customer assignment) with tactical inventory control decisions for each warehouse (i.e., order size and reorder point). A novel decomposition approach that deals with the nonconvex nature of the problem formulation is proposed and implemented, based on the Generalized Benders Decomposition. The proposed decomposition yields a Master Problem that addresses warehouses location and customer assignment decisions, and a set of underlying Subproblems (SPs) that deal with warehouse inventory control decisions. Based on this decomposition, nonlinearity of the original problem is captured by the SPs that are solved at optimality, while the Master Problem is a mixed integer linear programming problem. The master is solved using a commercial solver, the SPs are solved analytically by inspection, and cuts to be added into the Master Problem are obtained based on Lagrangian dual information. Optimal solutions were found for 160 instances in competitive times.

Idioma originalEnglish
Páginas (desde-hasta)806-817
Número de páginas12
PublicaciónEuropean Journal of Operational Research
Volumen267
N.º3
DOI
EstadoPublished - 16 jun 2018

Huella dactilar

Benders Decomposition
Capacity Constraints
Warehouses
Location Problem
Decomposition
Inventory control
Supply chains
Supply Chain Design
Inventory Control
Integer programming
Network Design
Decompose
Linear programming
Assignment
Customers
Inspection
Mixed Integer Linear Programming
Capacity constraints
Benders decomposition
Location problem

ASJC Scopus subject areas

  • Computer Science(all)
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

Citar esto

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A Generalized Benders Decomposition based algorithm for an inventory location problem with stochastic inventory capacity constraints. / Tapia-Ubeda, Francisco J.; Miranda, Pablo A.; Macchi, Marco.

En: European Journal of Operational Research, Vol. 267, N.º 3, 16.06.2018, p. 806-817.

Resultado de la investigación: Article

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