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An integrated supply chain problem: a nested lagrangian relaxation approach

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  • Ali Diabat
  • Jean-Philippe Richard

Abstract

The integration of tactical-level with strategic-level decisions in the supply chain represents an opportunity for substantial cost savings and provides a means for companies to gain a competitive advantage. Much of the previous research on supply chain network design has handled facility location decisions and inventory management decisions independently. In this paper, we develop a new joint facility location inventory model that is based on an approximate one-warehouse multi-retailer inventory model for each warehouse, and on the uncapacitated facility location problem. The proposed integer programming model simultaneously makes decisions pertaining to location and inventory policies on two echelons of the supply chain, the warehouse and the retailers. We develop two Lagrangian-relaxation-based algorithms to solve this model, and compare their performance to that of a conventional branch-and-bound algorithm on randomly generated problems. Copyright Springer Science+Business Media New York 2015

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  • Ali Diabat & Jean-Philippe Richard, 2015. "An integrated supply chain problem: a nested lagrangian relaxation approach," Annals of Operations Research, Springer, vol. 229(1), pages 303-323, June.
    • Handle: RePEc:spr:annopr:v:229:y:2015:i:1:p:303-323:10.1007/s10479-015-1818-4
    DOI: 10.1007/s10479-015-1818-4
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    Cited by:

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    5. Abolfazl Gharaei & Alireza Amjadian & Ali Shavandi & Amir Amjadian, 2023. "An augmented Lagrangian approach with general constraints to solve nonlinear models of the large-scale reliable inventory systems," Journal of Combinatorial Optimization, Springer, vol. 45(2), pages 1-37, March.
    6. Xianpei Hong & Wang Chunyuan & Lei Xu & Ali Diabat, 2016. "Multiple-vendor, multiple-retailer based vendor-managed inventory," Annals of Operations Research, Springer, vol. 238(1), pages 277-297, March.
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    8. Debnath, Biswajit & El-Hassani, Rihab & Chattopadhyay, Amit K. & Kumar, T. Krishna & Ghosh, Sadhan K. & Baidya, Rahul, 2022. "Time evolution of a Supply Chain Network: Kinetic modeling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).
    9. Diabat, Ali & Al-Salem, Mohammed, 2015. "An integrated supply chain problem with environmental considerations," International Journal of Production Economics, Elsevier, vol. 164(C), pages 330-338.
    10. Modibbo, Umar Muhammad & Arshad, Mohd. & Abdalghani, Omer & Ali, Irfan, 2021. "Optimization and estimation in system reliability allocation problem," Reliability Engineering and System Safety, Elsevier, vol. 212(C).
    11. Wang, Qifei & Hong, Xianpei & Gong, Yeming (Yale) & Chen, Wanying (Amanda), 2020. "Collusion or Not: The optimal choice of competing retailers in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 225(C).
    12. Laureano F. Escudero & María Araceli Garín & Celeste Pizarro & Aitziber Unzueta, 2018. "On efficient matheuristic algorithms for multi-period stochastic facility location-assignment problems," Computational Optimization and Applications, Springer, vol. 70(3), pages 865-888, July.
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    15. Diabat, Ali & Jabbarzadeh, Armin & Khosrojerdi, Amir, 2019. "A perishable product supply chain network design problem with reliability and disruption considerations," International Journal of Production Economics, Elsevier, vol. 212(C), pages 125-138.
    16. Nouira, Imen & Hammami, Ramzi & Frein, Yannick & Temponi, Cecilia, 2016. "Design of forward supply chains: Impact of a carbon emissions-sensitive demand," International Journal of Production Economics, Elsevier, vol. 173(C), pages 80-98.
    17. Mohammad Saeid Atabaki & Mohammad Mohammadi & Bahman Naderi, 2017. "Hybrid Genetic Algorithm and Invasive Weed Optimization via Priority Based Encoding for Location-Allocation Decisions in a Three-Stage Supply Chain," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(02), pages 1-44, April.
    18. Xianpei Hong & Wang Chunyuan & Lei Xu & Ali Diabat, 2016. "Multiple-vendor, multiple-retailer based vendor-managed inventory," Annals of Operations Research, Springer, vol. 238(1), pages 277-297, March.
    19. Roozbeh Nia, Ali & Awasthi, Anjali & Bhuiyan, Nadia, 2023. "Integrate exergy costs and carbon reduction policy in order to optimize the sustainability development of coal supply chains in uncertain conditions," International Journal of Production Economics, Elsevier, vol. 257(C).

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