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Outbound supply chain network design with mode selection and lead time considerations
Author(s) -
Eskigun Erdem,
Uzsoy Reha,
Preckel Paul V.,
Beaujon George,
Krishnan Subramanian,
Tew Jeffrey D.
Publication year - 2007
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/nav.20205
Subject(s) - supply chain , automotive industry , mathematical optimization , selection (genetic algorithm) , computer science , heuristic , mode (computer interface) , lead time , supply chain network , integer (computer science) , operations research , flow network , network planning and design , integer programming , supply chain management , scale (ratio) , nonlinear system , industrial engineering , mathematics , operations management , engineering , business , computer network , physics , marketing , quantum mechanics , artificial intelligence , programming language , aerospace engineering , operating system
We present a large‐scale network design model for the outbound supply chain of an automotive company that considers transportation mode selection (road vs. rail) and explicitly models the relationship between lead times and the volume of flow through the nodes of the network. We formulate the problem as a nonlinear zero‐one integer program, reformulate it to obtain a linear integer model, and develop a Lagrangian heuristic for its solution that gives near‐optimal results in reasonable time. We also present scenario analyses that examine the behavior of the supply chain under different parameter settings and the performance of the solution procedures under different experimental conditions. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007