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A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem

Publication: Research - peer-reviewBook chapter

In this paper we consider a model for integrating transportation and inventory decisions in a three-level logistics network consisting of plants, warehouses, and retailers (or customers). Our model includes production and throughout capacity constraints, and minimizes production, holding, and tansportation costs in a dynamic environment. We show that the problem can be reformulated as a certain type of assignment problem with convex objective function. Based on this observation, we propose a greedy heuristic for the problem, and illustrate its behaviour on a class of randomly generated problem instances. These experiments suggest that the heuristic may be asymptotically feasible and optimal with probability one in the number of customers.

Publication information

Original languageEnglish
Title of host publicationQuantitative Approaches to Distribution Logistics and Supply Chain Management
EditorsAndreas Klose, M. Gracia Speranza, Luke N. Van Wassenhove
Place of PublicationBerlin
PublisherSpringer
Publication date2002
Pages191-214
ISBN (print)9783540436904
StatePublished - 2002
Externally publishedYes
SeriesLecture Notes in Economics and Mathematical Systems
Volume519
ISSN0075-8442

ID: 40954310