An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results

  title={An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results},
  author={Mark S. Daskin and Collette R. Coullard and Zuo-Jun Max Shen},
  journal={Annals OR},
We introduce a distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers. In addition, the model incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term. The model is formulated as a non-linear integer-programming problem. Model properties are outlined. A Lagrangian relaxation solution algorithm is proposed. By exploiting the structure… CONTINUE READING
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