A capacitated inventory-location model: Formulation, solution approach and preliminary computational results

Abstract

Supply chain distribution network system provides an optimal platform for efficient and effective supply chain management. There are trade-offs betweenefficiency and responsiveness. In this research, a multi-objective capacitated location-inventory distribution network system is formulated which integrates the effects of facility location, transportation, and inventory issues and includes conflicting objectives. This model allows determining the optimal locations of distribution centers (DCs) and the assignment of buyers to DCs to find the set of Pareto optimal solutions. The possibility of a hybrid GA approach and its scenario analysis is investigated to understand the model performance and to illustrate how parameter changes influence its output. © 2009 Springer Berlin Heidelberg.