Distribution Supply Chain Inventory Planning under Uncertainty

J.J. Vicente, S. Relvas, A.P. Barbosa-Povoa
ABSTRACT:

This paper considers a multi-echelon inventory/distribution system formed by N-warehouses and M-retailers that manages a set of diverse products in a dynamic environment. Transshipment at both regional warehouses and retailers levels is allowed. A mixed integer linear programming model is developed, where product demand at the retailers is assumed to be not known. The problem consists of determining the optimal reorder policy by defining a new concept of robust retailer order in a two level programming approach, which minimizes the overall system cost, including ordering, holding in stock and in transit, transportation, transshipping and lost sales costs. A case study based on a real retailer distribution chain is solved.

Publisher
Operations Research and Big Data IO2015-XVII Congress of Portuguese Association of Operational Research (APDIO) (Published)
Date
Oct, 2015
Keywords
Supply chain management | inventory planning | mixed integer linear programming | uncertainty | scenario planning approach

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