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An efficient heuristic approach for a multi-period logistics network redesign problem

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  • M. Melo
  • S. Nickel
  • F. Saldanha-da-Gama

Abstract

In this paper, a multi-period logistics network redesign problem arising in the context of strategic supply chain planning is studied. Several aspects of practical relevance are captured, namely, multiple echelons with different types of facilities, product flows between facilities in the same echelon, direct shipments to customers, and facility relocation. A two-phase heuristic approach is proposed to obtain high-quality feasible solutions to the problem, which is initially modeled as a large-scale mixed-integer linear program. In the first phase of the heuristic, a linear programming rounding strategy is applied to find initial values for the binary location variables. The second phase of the heuristic uses local search to correct the initial variable choices when a feasible solution is not identified, or to improve the initial feasible solution when its quality does not meet given criteria. The results of a computational study are reported for randomly generated instances comprising a variety of logistics networks. Copyright Sociedad de Estadística e Investigación Operativa 2014

Suggested Citation

  • M. Melo & S. Nickel & F. Saldanha-da-Gama, 2014. "An efficient heuristic approach for a multi-period logistics network redesign problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(1), pages 80-108, April.
    • Handle: RePEc:spr:topjnl:v:22:y:2014:i:1:p:80-108
    DOI: 10.1007/s11750-011-0235-3
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    Cited by:

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    3. Anselmo Ramalho Pitombeira-Neto & Bruno de Athayde Prata, 2020. "A matheuristic algorithm for the one-dimensional cutting stock and scheduling problem with heterogeneous orders," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 178-192, April.
    4. Cortinhal, M. J. & Lopes, M. J. & Melo, M. T., 2014. "Redesigning a three-echelon logistics network over multiple time periods with transportation mode selection and outsourcing opportunities," Technical Reports on Logistics of the Saarland Business School 7, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    5. M. Fattahi & M. Mahootchi & S. M. Moattar Husseini, 2016. "Integrated strategic and tactical supply chain planning with price-sensitive demands," Annals of Operations Research, Springer, vol. 242(2), pages 423-456, July.
    6. Sheu, Jiuh Biing & Kundu, Tanmoy, 2018. "Forecasting time-varying logistics distribution flows in the One Belt-One Road strategic context," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 5-22.
    7. Ariane Kayser & Florian Sahling, 2023. "Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty," Schmalenbach Journal of Business Research, Springer, vol. 75(1), pages 1-35, March.

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