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Minimizing logistic costs in multistage supply chains
Author(s) -
Bertazzi Luca,
Speranza Maria Grazia
Publication year - 1999
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/(sici)1520-6750(199906)46:4<399::aid-nav4>3.0.co;2-9
Subject(s) - heuristic , mathematical optimization , computer science , class (philosophy) , set (abstract data type) , sequence (biology) , supply chain , economic order quantity , computation , point (geometry) , decomposition , operations research , dynamic programming , holding cost , mathematics , algorithm , artificial intelligence , ecology , geometry , biology , political science , law , genetics , programming language
We consider the problem in which a set of products has to be shipped from a common origin to a common destination through one or several intermediate nodes with the objective of minimizing the sum of inventory and transportation costs when a set of possible shipping frequencies is given on each link. From the theoretical point of view, the main issue is the computation of the inventory cost in the intermediate nodes. From the computational point of view, given that the simpler single link problem is known to be NP‐hard, we present four classes of heuristic algorithms. The first two classes are based on the decomposition of the sequence in links, the third class on the adaptation of the EOQ‐type solution known for the continuous case, and the fourth on the optimal solution of a simpler problem through dynamic programming techniques. Finally, we compare them on a set of randomly generated problem instances. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 399–417, 1999