A Greedy Heuristic for a Three-Level Multi-Period Single-Sourcing Problem
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.
|Keywords||dynamic demand pattern, dynamic models, heuristic solution approaches, inventory costs, transportation costs|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Romeijn, H.E., & Romero Morales, D.. (2000). A Greedy Heuristic for a Three-Level Multi-Period Single-Sourcing Problem (No. ERS-2000-04-LIS). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/13