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Lagrangian Relaxation for an Inventory Location Problem with Periodic Inventory Control and Stochastic Capacity Constraints
Joint Authors
Miranda, Pablo A.
Araya-Sassi, Claudio
Paredes-Belmar, Germán
Source
Mathematical Problems in Engineering
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-27, 27 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-10-08
Country of Publication
Egypt
No. of Pages
27
Main Subjects
Abstract EN
We studied a joint inventory location problem assuming a periodic review for inventory control.
A single plant supplies a set of products to multiple warehouses and they serve a set of customers or retailers.
The problem consists in determining which potential warehouses should be opened and which retailers should be served by the selected warehouses as well as their reorder points and order sizes while minimizing the total costs.
The problem is a Mixed Integer Nonlinear Programming (MINLP) model, which is nonconvex in terms of stochastic capacity constraints and the objective function.
We propose a solution approach based on a Lagrangian relaxation and the subgradient method.
The decomposition approach considers the relaxation of different sets of constraints, including customer assignment, warehouse demand, and variance constraints.
In addition, we develop a Lagrangian heuristic to determine a feasible solution at each iteration of the subgradient method.
The proposed Lagrangian relaxation algorithm provides low duality gaps and near-optimal solutions with competitive computational times.
It also shows significant impacts of the selected inventory control policy into total system costs and network configuration, when it is compared with different review period values.
American Psychological Association (APA)
Araya-Sassi, Claudio& Miranda, Pablo A.& Paredes-Belmar, Germán. 2018. Lagrangian Relaxation for an Inventory Location Problem with Periodic Inventory Control and Stochastic Capacity Constraints. Mathematical Problems in Engineering،Vol. 2018, no. 2018, pp.1-27.
https://search.emarefa.net/detail/BIM-1209220
Modern Language Association (MLA)
Araya-Sassi, Claudio…[et al.]. Lagrangian Relaxation for an Inventory Location Problem with Periodic Inventory Control and Stochastic Capacity Constraints. Mathematical Problems in Engineering No. 2018 (2018), pp.1-27.
https://search.emarefa.net/detail/BIM-1209220
American Medical Association (AMA)
Araya-Sassi, Claudio& Miranda, Pablo A.& Paredes-Belmar, Germán. Lagrangian Relaxation for an Inventory Location Problem with Periodic Inventory Control and Stochastic Capacity Constraints. Mathematical Problems in Engineering. 2018. Vol. 2018, no. 2018, pp.1-27.
https://search.emarefa.net/detail/BIM-1209220
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1209220