Open AccessCollaborative Optimization for Location-Inventory Problem of Commercial Vehicle Distribution Network
Author(s) -
Wanying Peng,
Qi Lu
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/638/1/012006
Subject(s) - solver , mathematical optimization , integer programming , linear programming , computer science , variable (mathematics) , operations research , stability (learning theory) , integer (computer science) , branch and bound , order (exchange) , distribution (mathematics) , inventory theory , optimization problem , inventory control , mathematics , economics , programming language , mathematical analysis , finance , machine learning
This paper studies a bi-level programming model addressing the location-inventory problem which can determine the location of distribution centers and the inventory strategy of distribution centers and stores at the same time. In the location-inventory joint decision model, the order quantity is a continuous decision variable associating the upper and lower models and the remaining decision variables are 0-1 variables. In this paper, a branch and bound method is proposed and the SCIP solver is used to solve the bi-level mixed integer non-linear programming problem. The results show that collaborative optimization can save more costs than the one-by- one optimization method and that the optimal solution has better stability under the condition of demand fluctuation and satisfies the optimal allocation of important customers.