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

Pablo A. Miranda; Rodrigo A. Garrido

doi:10.1016/j.tre.2006.04.002

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

Pablo A. Miranda, Rodrigo A. Garrido

Facultad Ingeniería

Resultado de la investigación: Contribución a una revista › Artículo

58 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 original	Inglés
Páginas (desde-hasta)	47-65
Número de páginas	19
Publicación	Transportation Research Part E: Logistics and Transportation Review
Volumen	44
N.º	1
DOI	https://doi.org/10.1016/j.tre.2006.04.002
Estado	Publicada - 1 ene 2008

Áreas temáticas de ASJC Scopus

Gestión internacional y de empresa
Ingeniería civil y de estructuras
Transporte

Acceder al documento

10.1016/j.tre.2006.04.002

Link to publication in Scopus

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Miranda, P. A., & Garrido, R. A. (2008). Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity. Transportation Research Part E: Logistics and Transportation Review, 44(1), 47-65. https://doi.org/10.1016/j.tre.2006.04.002

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