Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 83, Issue -, Pages 141-157Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2015.09.009
Keywords
Location-inventory model; Two demand classes; Critical level rationing; Fast-moving items; Mixed integer non linear programming
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Funding
- Institute Complex Engineering Systems [ICM-MINECON P-05-004-F, CONICYT FBO16]
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This paper analyzes the design of a distribution network for fast-moving items able to provide differentiated service levels in terms of product availability for two demand classes (high and low priority) using a critical level policy. The model is formulated as a MINLP with chance constraints for which we propose a heuristic to solve it. Although the heuristic does not guarantee an optimal solution, our computational experiments have shown that it provides good-quality solutions that are on average 0.8% and at worst 2.7% from the optimal solution. (C) 2015 Elsevier Ltd. All rights reserved.
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