Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands

Aaron Guerrero Campanur, Elias Olivares-Benitez, Pablo A. Miranda, Rodolfo Eleazar Perez-Loaiza, Jose Humberto Ablanedo-Rosas

Resultado de la investigación: Article

Resumen

Industrial systems, such as logistics and supply chain networks, are complex systems because they comprise a big number of interconnected actors and significant nonlinear and stochastic features. This paper analyzes a distribution network design problem for a four-echelon supply chain. The problem is represented as an inventory-location model with uncertain demand and a continuous review inventory policy. The decision variables include location at the intermediate levels and product flows between echelons. The related safety and cyclic inventory levels can be computed from these decision variables. The problem is formulated as a mixed integer nonlinear programming model to find the optimal design of the distribution network. A linearization of the nonlinear model based on a piecewise linear approximation is proposed. The objective function and nonlinear constraints are reformulated as linear formulations, transforming the original nonlinear problem into a mixed integer linear programming model. The proposed approach was tested in 50 instances to compare the nonlinear and linear formulations. The results prove that the proposed linearization outperforms the nonlinear formulation achieving convergence to a better local optimum with shorter computational time. This method provides flexibility to the decision-maker allowing the analysis of scenarios in a shorter time.

Idioma originalEnglish
Número de artículo4139601
PublicaciónComplexity
Volumen2018
DOI
EstadoPublished - 1 ene 2018

Huella dactilar

Multi-echelon
Supply chain network
Nonlinear systems
Uncertain demand
Logistics
Distribution network
Linearization
Supply chain
Scenarios
Objective function
Integer
Mixed integer linear programming
Nonlinear programming
Network design
Continuous review
Location model
Safety
Decision maker
Inventory policy
Approximation

ASJC Scopus subject areas

  • General

Citar esto

Guerrero Campanur, A., Olivares-Benitez, E., Miranda, P. A., Perez-Loaiza, R. E., & Ablanedo-Rosas, J. H. (2018). Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands. Complexity, 2018, [4139601]. https://doi.org/10.1155/2018/4139601
Guerrero Campanur, Aaron ; Olivares-Benitez, Elias ; Miranda, Pablo A. ; Perez-Loaiza, Rodolfo Eleazar ; Ablanedo-Rosas, Jose Humberto. / Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands. En: Complexity. 2018 ; Vol. 2018.
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Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands. / Guerrero Campanur, Aaron; Olivares-Benitez, Elias; Miranda, Pablo A.; Perez-Loaiza, Rodolfo Eleazar; Ablanedo-Rosas, Jose Humberto.

En: Complexity, Vol. 2018, 4139601, 01.01.2018.

Resultado de la investigación: Article

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