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Dimensionality-reduction Procedure for the Capacitated p-Median Transportation Inventory Problem

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  • Rafael Bernardo Carmona-Benítez

    (School of Business and Economics, Universidad Anahuac Mexico, Huixquilucan 52786, Mexico)

Abstract

The capacitated p-median transportation inventory problem with heterogeneous fleet (CLITraP-HTF) aims to determine an optimal solution to a transportation problem subject to location-allocation, inventory management and transportation decisions. The novelty of CLITraP-HTF is to design a supply chain that solves all these decisions at the same time. Optimizing the CLITraP-HTF is a challenge because of the high dimension of the decision variables that lead to a large and complex search space. The contribution of this paper is to develop a dimensionality-reduction procedure (DRP) to reduce the CLITraP-HTF complexity and help to solve it. The proposed DRP is a mathematical proof to demonstrate that the inventory management and transportation decisions can be solved before the optimization procedure, thus reducing the complexity of the CLITraP-HTF by greatly narrowing its number of decision variables such that the remaining problem to solve is the well-known capacitated p-median problem (CPMP). The conclusion is that the proposed DRP helps to solve the CLITraP-HTF because the CPMP can be and has been solved by applying different algorithms and heuristic methods.

Suggested Citation

  • Rafael Bernardo Carmona-Benítez, 2020. "Dimensionality-reduction Procedure for the Capacitated p-Median Transportation Inventory Problem," Mathematics, MDPI, vol. 8(4), pages 1-16, March.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:4:p:471-:d:338533
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