Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity

Pablo A. Miranda, Rodrigo A. Garrido

Resultado de la investigación: Article

56 Citas (Scopus)

Resumen

We developed an efficient heuristic to solve a joint location-distribution-inventory model for a three layered supply chain. A firm must locate distribution centers to supply a commodity to spatially distributed retailers with stochastic demand. The solution approach is based on Lagrangian relaxation, improved with validity constraints derived from the finite set of all possible combinations of mean demand and variance. The optimal solution's lower bound is found through the optimal solution of the dual problem. The dual gap gives a threshold to the heuristic's error. The heuristic was applied to 98 instances with an average error threshold of 3%.

Idioma originalEnglish
Páginas (desde-hasta)47-65
Número de páginas19
PublicaciónTransportation Research Part E: Logistics and Transportation Review
Volumen44
N.º1
DOI
EstadoPublished - 1 ene 2008

Huella dactilar

heuristics
Supply chains
demand
commodity
supply
firm
Valid inequalities
Lagrangian relaxation
Location problem
Heuristics
Optimal solution
Supply chain
Dual problem
Distribution center
Inventory model
Commodities
Lower bounds
Stochastic demand
Retailers

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

Citar esto

@article{45beaa2f2cad4e9d9be5db826b764ad1,
title = "Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity",
abstract = "We developed an efficient heuristic to solve a joint location-distribution-inventory model for a three layered supply chain. A firm must locate distribution centers to supply a commodity to spatially distributed retailers with stochastic demand. The solution approach is based on Lagrangian relaxation, improved with validity constraints derived from the finite set of all possible combinations of mean demand and variance. The optimal solution's lower bound is found through the optimal solution of the dual problem. The dual gap gives a threshold to the heuristic's error. The heuristic was applied to 98 instances with an average error threshold of 3{\%}.",
keywords = "Distribution network design, Facility location problems, Inventory-location models, Lagrangian relaxation, Valid inequalities",
author = "Miranda, {Pablo A.} and Garrido, {Rodrigo A.}",
year = "2008",
month = "1",
day = "1",
doi = "10.1016/j.tre.2006.04.002",
language = "English",
volume = "44",
pages = "47--65",
journal = "Transportation Research, Part E: Logistics and Transportation Review",
issn = "1366-5545",
publisher = "Elsevier Limited",
number = "1",

}

TY - JOUR

T1 - Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity

AU - Miranda, Pablo A.

AU - Garrido, Rodrigo A.

PY - 2008/1/1

Y1 - 2008/1/1

N2 - We developed an efficient heuristic to solve a joint location-distribution-inventory model for a three layered supply chain. A firm must locate distribution centers to supply a commodity to spatially distributed retailers with stochastic demand. The solution approach is based on Lagrangian relaxation, improved with validity constraints derived from the finite set of all possible combinations of mean demand and variance. The optimal solution's lower bound is found through the optimal solution of the dual problem. The dual gap gives a threshold to the heuristic's error. The heuristic was applied to 98 instances with an average error threshold of 3%.

AB - We developed an efficient heuristic to solve a joint location-distribution-inventory model for a three layered supply chain. A firm must locate distribution centers to supply a commodity to spatially distributed retailers with stochastic demand. The solution approach is based on Lagrangian relaxation, improved with validity constraints derived from the finite set of all possible combinations of mean demand and variance. The optimal solution's lower bound is found through the optimal solution of the dual problem. The dual gap gives a threshold to the heuristic's error. The heuristic was applied to 98 instances with an average error threshold of 3%.

KW - Distribution network design

KW - Facility location problems

KW - Inventory-location models

KW - Lagrangian relaxation

KW - Valid inequalities

UR - http://www.scopus.com/inward/record.url?scp=35248832641&partnerID=8YFLogxK

U2 - 10.1016/j.tre.2006.04.002

DO - 10.1016/j.tre.2006.04.002

M3 - Article

AN - SCOPUS:35248832641

VL - 44

SP - 47

EP - 65

JO - Transportation Research, Part E: Logistics and Transportation Review

JF - Transportation Research, Part E: Logistics and Transportation Review

SN - 1366-5545

IS - 1

ER -