A study on the budget constrained facility location model considering inventory management cost∗

Hyun-Woong Jin

RAIRO - Operations Research (2012)

  • Volume: 46, Issue: 2, page 107-123
  • ISSN: 0399-0559

Abstract

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One of the important issues on the distribution network design is to incorporate inventory management cost into the facility location model. This paper deals with a network model making the decisions on the facility location such as the number of DCs and their locations as well as the decisions on the inventory management such as the ordering quantity and the level of safety stock at each DC. The considered model differs from the previous works by classifying the related costs into the operating cost and the investment cost. For this model, a solution procedure based on the Lagrangian relaxation method was proposed and tested for its effectiveness with various numerical examples.

How to cite

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Jin, Hyun-Woong. "A study on the budget constrained facility location model considering inventory management cost∗." RAIRO - Operations Research 46.2 (2012): 107-123. <http://eudml.org/doc/276400>.

@article{Jin2012,
abstract = {One of the important issues on the distribution network design is to incorporate inventory management cost into the facility location model. This paper deals with a network model making the decisions on the facility location such as the number of DCs and their locations as well as the decisions on the inventory management such as the ordering quantity and the level of safety stock at each DC. The considered model differs from the previous works by classifying the related costs into the operating cost and the investment cost. For this model, a solution procedure based on the Lagrangian relaxation method was proposed and tested for its effectiveness with various numerical examples.},
author = {Jin, Hyun-Woong},
journal = {RAIRO - Operations Research},
keywords = {Location; inventory management; nonlinear programming; Lagrangian relaxation; location},
language = {eng},
month = {6},
number = {2},
pages = {107-123},
publisher = {EDP Sciences},
title = {A study on the budget constrained facility location model considering inventory management cost∗},
url = {http://eudml.org/doc/276400},
volume = {46},
year = {2012},
}

TY - JOUR
AU - Jin, Hyun-Woong
TI - A study on the budget constrained facility location model considering inventory management cost∗
JO - RAIRO - Operations Research
DA - 2012/6//
PB - EDP Sciences
VL - 46
IS - 2
SP - 107
EP - 123
AB - One of the important issues on the distribution network design is to incorporate inventory management cost into the facility location model. This paper deals with a network model making the decisions on the facility location such as the number of DCs and their locations as well as the decisions on the inventory management such as the ordering quantity and the level of safety stock at each DC. The considered model differs from the previous works by classifying the related costs into the operating cost and the investment cost. For this model, a solution procedure based on the Lagrangian relaxation method was proposed and tested for its effectiveness with various numerical examples.
LA - eng
KW - Location; inventory management; nonlinear programming; Lagrangian relaxation; location
UR - http://eudml.org/doc/276400
ER -

References

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