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Location-inventory and shipment decisions in an integrated distribution system: an efficient heuristic solution

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  • G. Reza Nasiri
  • Nasim Ghaffari
  • Hamid Davoudpour

Abstract

Distribution network design is the most important strategic issue in supply chain management. In all the studies carried out in this area, materials always move from one level to the next, while in the flexible distribution system, materials flow between facilities in the same level (lateral transshipment). The purpose of this study is to consider the impact of lateral transshipment issues into location, allocation and inventory decisions of distribution centres located in the same level. The model was developed as a nonlinear mixed integer programming model and solved using memetic algorithm. To evaluate the performance of the proposed algorithm in the large-scale competitive logistics system, the lower bound was provided by LP relaxation method. Finally, the effects of lateral transshipment on system costs, safety stock and warehouse load ratio index were considered. Results show that lateral transshipment may improve supply performance. [Received 13 August 2012; Revised 31 May 2013; Revised 10 August 2013; Revised 12 February 2014; Accepted 15 June 2014]

Suggested Citation

  • G. Reza Nasiri & Nasim Ghaffari & Hamid Davoudpour, 2015. "Location-inventory and shipment decisions in an integrated distribution system: an efficient heuristic solution," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 9(5), pages 613-637.
    • Handle: RePEc:ids:eujine:v:9:y:2015:i:5:p:613-637
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    Cited by:

    1. Nasiri, G. Reza & Deymeh, Hadi & Karimi, Behrooz & Miandoabchi, Elnaz, 2021. "Incorporating sales and marketing considerations into a competitive multi-echelon distribution network design problem with pricing strategy in a stochastic environment," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    2. Mónica Franco-Ángel & Mariam Rabih Awad Urbano, 2022. "An Analysis of Marketing Strategy in Small-and-Medium-sized Colombian Enterprises," Estudios Gerenciales, Universidad Icesi, vol. 38(165), pages 493-506, November.

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