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

H. Edwin Romeijn, Dolores Romero Morales

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

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.
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
Publication statusPublished - 2002
Externally publishedYes
SeriesLecture Notes in Economics and Mathematical Systems
Volume519
ISSN0075-8442

Cite this

Romeijn, H. E., & Romero Morales, D. (2002). A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem. In A. Klose, M. G. Speranza, & L. N. V. Wassenhove (Eds.), Quantitative Approaches to Distribution Logistics and Supply Chain Management (pp. 191-214). Berlin: Springer. Lecture Notes in Economics and Mathematical Systems, Vol.. 519
Romeijn, H. Edwin ; Romero Morales, Dolores . / A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem. Quantitative Approaches to Distribution Logistics and Supply Chain Management . editor / Andreas Klose ; M. Gracia Speranza ; Luke N. Van Wassenhove. Berlin : Springer, 2002. pp. 191-214 (Lecture Notes in Economics and Mathematical Systems, Vol. 519).
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Romeijn, HE & Romero Morales, D 2002, A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem. in A Klose, MG Speranza & LNV Wassenhove (eds), Quantitative Approaches to Distribution Logistics and Supply Chain Management . Springer, Berlin, Lecture Notes in Economics and Mathematical Systems, vol. 519, pp. 191-214.

A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem. / Romeijn, H. Edwin; Romero Morales, Dolores .

Quantitative Approaches to Distribution Logistics and Supply Chain Management . ed. / Andreas Klose; M. Gracia Speranza; Luke N. Van Wassenhove. Berlin : Springer, 2002. p. 191-214 (Lecture Notes in Economics and Mathematical Systems, Vol. 519).

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

TY - CHAP

T1 - A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem

AU - Romeijn, H. Edwin

AU - Romero Morales, Dolores

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AB - 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.

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KW - Heuristic solution approaches

KW - Inventory costs

KW - Transportation costs

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BT - Quantitative Approaches to Distribution Logistics and Supply Chain Management

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Romeijn HE, Romero Morales D. A Greedy Heuristic for a Three-level Multi-period Single-sourcing Problem. In Klose A, Speranza MG, Wassenhove LNV, editors, Quantitative Approaches to Distribution Logistics and Supply Chain Management . Berlin: Springer. 2002. p. 191-214. (Lecture Notes in Economics and Mathematical Systems, Vol. 519).