On Solving the Multi-period Single-sourcing Problem Under Uncertainty

A. Alonso-Ayuso, Laureano F. Escudero, C. Pizarro, H. Edwin Romeijn, Dolores Romero Morales

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We present a framework for solving the strategic problem of assigning retailers to facilities in a multi-period single-sourcing product environment under uncertainty in the demand from the retailers and the cost of production, inventory holding, backlogging and distribution of the product. By considering a splitting variable mathematical representation of the Deterministic Equivalent Model, we specialize the so-called Branch-and-Fix Coordination algorithmic framework. It exploits the structure of the model and, specifically, the non-anticipativity constraints for the assignment variables. The algorithm uses the Twin Node Family (TNF) concept. Our procedure is specifically designed for coordinating the selection of the branching TNF and the branching S3 set, such that the non-anticipativity constraints are satisfied. Some computational experience is reported.
Original languageEnglish
JournalComputational Management Science
Volume3
Issue number1
Pages (from-to)29-53
ISSN1619-697X
DOIs
Publication statusPublished - 2006
Externally publishedYes

Cite this

Alonso-Ayuso, A. ; Escudero, Laureano F. ; Pizarro, C. ; Romeijn, H. Edwin ; Romero Morales, Dolores . / On Solving the Multi-period Single-sourcing Problem Under Uncertainty. In: Computational Management Science. 2006 ; Vol. 3, No. 1. pp. 29-53.
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On Solving the Multi-period Single-sourcing Problem Under Uncertainty. / Alonso-Ayuso, A.; Escudero, Laureano F.; Pizarro, C.; Romeijn, H. Edwin; Romero Morales, Dolores .

In: Computational Management Science, Vol. 3, No. 1, 2006, p. 29-53.

Research output: Contribution to journalJournal articleResearchpeer-review

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T1 - On Solving the Multi-period Single-sourcing Problem Under Uncertainty

AU - Alonso-Ayuso, A.

AU - Escudero, Laureano F.

AU - Pizarro, C.

AU - Romeijn, H. Edwin

AU - Romero Morales, Dolores

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AB - We present a framework for solving the strategic problem of assigning retailers to facilities in a multi-period single-sourcing product environment under uncertainty in the demand from the retailers and the cost of production, inventory holding, backlogging and distribution of the product. By considering a splitting variable mathematical representation of the Deterministic Equivalent Model, we specialize the so-called Branch-and-Fix Coordination algorithmic framework. It exploits the structure of the model and, specifically, the non-anticipativity constraints for the assignment variables. The algorithm uses the Twin Node Family (TNF) concept. Our procedure is specifically designed for coordinating the selection of the branching TNF and the branching S3 set, such that the non-anticipativity constraints are satisfied. Some computational experience is reported.

KW - Two-stage stochastic

KW - mixed 0-1 programs

KW - Non-anticipativity constraints

KW - Splitting variables

KW - Twin node family

KW - Branch-and-fix coordination

KW - Fix-and-relax coordination

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