IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v33y1987i11p1469-1480.html
   My bibliography  Save this article

Design and Operation of a Multicommodity Production/Distribution System Using Primal Goal Decomposition

Author

Listed:
  • Gerald G. Brown

    (Department of Operations Research, Naval Postgraduate School, Monterey, California 93943)

  • Glenn W. Graves

    (Graduate School of Management, University of California, Los Angeles, California 90024)

  • Maria D. Honczarenko

    (Nabisco Brands, Inc., East Hanover, New Jersey 07936)

Abstract

An optimization-based decision support system has been developed and used by NABISCO to manage complex problems involving facility selection, equipment location and utilization, and manufacture and distribution of products such as the familiar Ritz Crackers, Oreo Cookies, Fig Newtons, etc. (all product names trademarks of NABISCO). A mixed-integer, multi-commodity model is presented for the problems at hand, and a new class of goal decompositions is introduced to yield pure network subproblems for each commodity; the associated master problems have several notable properties which contribute to the effectiveness of the algorithm. Excellent quality solutions for problems with more than 40,000 variables (including several hundred binary variables with fixed charges) and in excess of 20,000 constraints require only 0.6 megabytes region and less than one compute minute on a time-shared IBM 3033 computer; average problems (with fewer binary variables) require only a second or two. The solution method has more to recommend it than sheer efficiency: new insights are given for the fundamental convergence properties of formal decomposition techniques. Several applications of this powerful interactive tool are discussed.

Suggested Citation

  • Gerald G. Brown & Glenn W. Graves & Maria D. Honczarenko, 1987. "Design and Operation of a Multicommodity Production/Distribution System Using Primal Goal Decomposition," Management Science, INFORMS, vol. 33(11), pages 1469-1480, November.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:11:p:1469-1480
    DOI: 10.1287/mnsc.33.11.1469
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.33.11.1469
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.33.11.1469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    2. Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
    3. Majid Azizi & Mehdi Faezipour, 2016. "Furniture industry management by applying SCM," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1155811-115, December.
    4. Vila, Didier & Martel, Alain & Beauregard, Robert, 2006. "Designing logistics networks in divergent process industries: A methodology and its application to the lumber industry," International Journal of Production Economics, Elsevier, vol. 102(2), pages 358-378, August.
    5. Cordeau, Jean-François & Laporte, Gilbert & Pasin, Federico, 2008. "An iterated local search heuristic for the logistics network design problem with single assignment," International Journal of Production Economics, Elsevier, vol. 113(2), pages 626-640, June.
    6. Eskigun, Erdem & Uzsoy, Reha & Preckel, Paul V. & Beaujon, George & Krishnan, Subramanian & Tew, Jeffrey D., 2005. "Outbound supply chain network design with mode selection, lead times and capacitated vehicle distribution centers," European Journal of Operational Research, Elsevier, vol. 165(1), pages 182-206, August.
    7. Blossey, Gregor & Hahn, Gerd J. & Koberstein, Achim, 2022. "Planning pharmaceutical manufacturing networks in the light of uncertain production approval times," International Journal of Production Economics, Elsevier, vol. 244(C).
    8. Halit Üster & Gopalakrishnan Easwaran & Elif Akçali & Sila Çetinkaya, 2007. "Benders decomposition with alternative multiple cuts for a multi‐product closed‐loop supply chain network design model," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(8), pages 890-907, December.
    9. Jabarzare, Ziba & Zolfagharinia, Hossein & Najafi, Mehdi, 2020. "Dynamic interdiction networks with applications in illicit supply chains," Omega, Elsevier, vol. 96(C).
    10. Zimmer, Kirstin, 2002. "Supply chain coordination with uncertain just-in-time delivery," International Journal of Production Economics, Elsevier, vol. 77(1), pages 1-15, May.
    11. Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
    12. Erdem Eskigun & Reha Uzsoy & Paul V. Preckel & George Beaujon & Subramanian Krishnan & Jeffrey D. Tew, 2007. "Outbound supply chain network design with mode selection and lead time considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(3), pages 282-300, April.
    13. Ming Fan & Jan Stallaert & Andrew B. Whinston, 2003. "Decentralized Mechanism Design for Supply Chain Organizations Using an Auction Market," Information Systems Research, INFORMS, vol. 14(1), pages 1-22, March.
    14. Gerald G. Brown & Richard E. Rosenthal, 2008. "Optimization Tradecraft: Hard-Won Insights from Real-World Decision Support," Interfaces, INFORMS, vol. 38(5), pages 356-366, October.
    15. Jayaraman, Vaidyanathan & Pirkul, Hasan, 2001. "Planning and coordination of production and distribution facilities for multiple commodities," European Journal of Operational Research, Elsevier, vol. 133(2), pages 394-408, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:33:y:1987:i:11:p:1469-1480. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.